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Money / Financial management

Seven ways to slash your accounting costs

In the current economy, cost cutting is vital for the survival of your business. Luckily, accounting is one area where it’s surprisingly easy to cut costs.

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1. Look at your internal controls

If you don’t have the right systems and procedures in place when it comes to bookkeeping, then you’re never going to save money.

Analyse your strengths and weaknesses and if bookkeeping is not your strength, consider outsourcing it. You might have to pay for a bookkeeper, but consider the expense as an investment because you’ll have more time to work on your business.

2. Ask your accountant

Let your accountant know that you’re trying to reduce your expenses, and ask him or her what you can do to decrease your accounting bill. Unless your accountant is aware you’re trying to cut costs (even if you tidy up the paperwork and records you send them), they may not pass the cost savings on to you.

3. Review your software

With the help of your accountant, do an analysis of your accounting software to determine if you’re using the best program for your business, and more importantly, whether you’re using your software efficiently. Ask your accountant to set you up a chart of accounts and make sure you only use those accounts.

"Unless your accountant is aware you’re trying to cut costs… they may not pass the cost savings on to you."

4. Look at your balance sheet

The more accounts, loans and credit cards you have, the higher your accounting bill is going to be. Close any unnecessary bank accounts and keep personal transactions running through an account that is separate to your business. Streamlining your accounts will save your accountant time, and save you money.

Want more articles like this? Check out the financial management section.

5. Package your information

At tax time, look at the way you present information to your accountant.

Your accountant should be supplying you with a list of everything they require to complete your return. Make sure you supply all the necessary documents and only include information that relates to the current tax year. Accountants will review all information that you send to them, so providing irrelevant information will increase your accounting bill.

6. Be efficient

Provide information to your accountant as soon as they ask for it. If your accountant phones for additional information, supply it as quickly as possible.

7. Ask questions

Once your yearly tax return is finished, a good accountant will sit down with you to run through your financial statements and to answer any questions. Plan for this appointment in advance. Start a list with questions for your accountant, and add to this list during the year. By making the most of every appointment you’re helping to reduce your accounting bill.

Try implementing these seven tips and your accounting costs can be slashed in no time.

How do you slash your accounting costs?

Jasmine Kidd

is a FCPA and registered tax agent who specialises in small business, superannuation, property tax and salary tax law. She is also the director of Online Tax Solutions.

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