Ways to save on accounting and bookkeeping costs

Lowering your accounting and bookkeeping costs

Having a good accountant or bookkeeper is key to helping you or your business function more efficiently and cost effectively. Cost for bookkeeping and accounting services will depend largely on the types of service you require. There are a couple of basic rules that will help you keep accounting and bookkeeping costs to a minimum:

1. Keep clean, clear, accurate records. Accountants and bookkeepers generally charge by the hour. The easier it is for the accountant or bookkeeper to read and understand the information you bring in, the quicker the service will be performed. Find out what you can do in advance to make the work easier.
2. Use an automated system for record keeping. The goal is to make your or your company's information accessible as possible. Computerised systems allow you to pass information back and forth quickly and easily.
3. Keep your accountant informed of business and personal financial decisions. Think of your accountant as a trusted business advisor. Talk with them about your plans for the year ahead. They can help you develop financial and tax saving strategies that will make sure that you set up the best business and financial scenario for your particular situation.
4. Be prepared. In advance of your scheduled meetings with your accountant or bookkeeper, write down as many of your questions that you can think of. You will want the meeting to be organised and flow smoothly and take notes so that you will remember details.
5. Billing. Ask for a detailed bill by type of service you receive including time and billing rates. This breakdown will give you an indication of areas where you can save money. As a general rule use your accountant for his or her expertise in financial planning, taxation and business advice services. For basic bookkeeping either do some of the work yourself or outsource to a bookkeeping service.