If you want to save money on accounting fees, then rule number one is to avoid backing up the truck to your Accountants reception and swamping them under boxes of paperwork. Shopping around for the cheapest Accountant can also be a futile and dangerous sport. The secret is to simplify your accounting because anything creative or complex will add a whole lot of zero’s to your Accounting bill so here’s some tips to help get you sorted:
- Having sixteen-million bank accounts is un-cool. Most businesses only need two bank accounts; one for saving and one for everything business.
- Run the bank accounts, your Invoices and GST Returns through a simple accounting system like Xero. Then choose a Chartered Accountant who’ll prepare your end-of-year accounts in Xero so you don’t get stuck with two mismatched systems.
- It’s also a good idea to eliminate any of these costly little gremlins:
- – doing your bookkeeping on spreadsheets
- – using hire purchase to pay lots of things off
- – paying Inland Revenue bills late or paying ACC by instalment
- – using the business bank account for personal things
- – paying business expenses with cash or from your personal bank accounts
- – having overseas income, bank accounts, foreign investments or Kiwisaver taxed incorrectly
- – transferring money all over the place (especially between your companies or Trusts)
- – using things like Bartercard or Q-Card because they need to be painfully entered into your accounting system by hand (and if you think they’re interest free then dream on)
- – having broken bank accounts and by this I mean not being able to explain why the balance on your bank statement doesn’t agree to your accounting software
- – making changes to your accounting software for periods that you’ve already filed your GST Return
- – avoiding your Chartered Accountants calls and taking forever to answer their questions! Time is money and things get pricey everytime your Accountant has to put down your job and then pick it up again.
Not giving your Accountant everything they need is kind of like opening up a patient for heart surgery and then realising the pacemaker hasn’t been ordered.