09 Aug 7 Ways to Save on Accounting Fees
Accountants, lawyers, architects and many other professionals charge for their time, so the best way to minimise any professionals fee is to reduce the time required to complete the work. The number one rule for reducing accounting fees is to drop off clean, tidy and complete records. Let’s save some money on your accounting fees with our 7 Ways to Save on Accounting Fees!
Mostly, it’s not the size of the business that dictates the fees, it is the quality of the records. Unfortunately, it’s often the smaller businesses who struggle the most with their record keeping and end up paying too much. If you think this could be you, talk to us about things you could do to reduce your accounting fee and have a look at our tips below.
Advanced accounting like tax structuring, dividend declarations and specific accounting advice might result in a higher than usual accounting fee. Here are some of the most common things we come across that also take a bit longer:
- Buying or selling a property
- Loan restructuring
- Changes to Trust legislation
- IRD reporting
Ask us for an upfront fee estimation or monthly fixed fee if you haven’t already.
So here it is… 7 Ways to Save on Accounting Fees!
1. Clean records
At all costs, avoid giving us a mess to clean up or incomplete records. If you are not comfortable, or not really sure when completing your own coding or GST returns please, talk to us. We have free resources and free quick queries for the simple queries. For more advanced assistance we can help set up software automation, provide Xero, admin or GST training and if it’s really complex, having us complete your GST Returns can actually be much cheaper and easier in the long run. After all, your time is money too.
2. Keep good records
Keep records of GST and PAYE workings and calculations, bank statements, hire purchase and loan agreements and all receipts. Please don’t send in all of your records, provide us with copies of documents requested in your end of year questionnaires or if we ask.
3. Leverage technology
Utilise technology to do things that previously you would pay your accountant to do. Let cloud based software such as Xero automate previously time consuming tasks. Keeping manual records to save a few dollars can be false economy as it adds significant time to processing your end of year returns. If you have more than 10-20 transactions per month or are GST registered a simple Xero cashbook solution will most likely work out cheaper in the long run. Talk to us we’ll be happy to work with you for the best solution and have free resources available to help.
4.Keep Work and Play Separate
This is the easiest way to reduce your costs. Use your business bank account to receive all business income, paying all business expenses and paying a regular amount of drawings to your personal bank account. Use your personal bank account for all of your personal expenses. This way we can focus on simply working on your business expenses.
5. KISS – Keep it Simple Sweetheart
Complex business structures, multiple bank accounts, related party, inter-entity transactions and unusual arrangements. These often seem like a good idea at the time, and maybe they once were, however changes to your business, circumstances or legislation may mean that they now just add unnecessary complexity, additional time and reduce clarity in understanding your finances.
6. Frequent Flyers of our Free Quick Queries
We love to chat and hear from you throughout the year. Keeping us informed and asking accounting and tax questions first can save you $$$ in end of year accounting fees and unnecessary taxes. Our free quick queries are limited to any issue than can be resolved within 10 minutes. We recommend emailing your queries to Addy – advice@borriegroup.co.nz this way we can direct your query to the most appropriate and available team member.
7. Going AWOL and taking shortcuts
Provide all requested information and respond to queries quickly.
Does this sound like you? You started completing the end of year questionnaires, but it was taking too long, so you skipped it and just sent in what you had. You forget to reply to your accountants emails (or ignore them) until the third (or more) request. When you do reply, you only answer some of the questions. If this sounds like you, you are probably paying too much in accounting fees and are probably not in your accountants good books.
Our ‘7 Ways to Save on Accounting Fees’ not enough?
The better you understand your business and your financials, the easier it will be to make more money and ultimately achieve your goals. We have developed comprehensive resources to enable business owners to fully understand and interpret their numbers. Need more help? Join our free webinars on financial awareness coaching or talk to us about personalised financial awareness coaching. Contact Samantha for a call, zoom or meet on 06 871 0793.
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