Reducing the fees associated with the work your accountant does is possible! The great news is that savings are often quite easy to achieve for many owners. If you were only to do one thing, it would be to ensure your records are complete and organized. There are other ways to save as well.
The cleaner the job is coming in, the less expensive the job is going out. This step will reduce the time and cost associated with completing your annual financial statement and allow us time to add value to your business. Our usefulness is often in helping you with simple strategies to ensure success.
There are a few ways you can save money on accounting fees:
Do your bookkeeping and accounting
This requires the most effort on your part and will save you the most money. It can get you into the most trouble if you do not have a thorough knowledge of Canada’s tax system, so be aware.
Use accounting software
Do not bring a box of receipts into your accountant’s office. If you use a manual system, your accountant’s staff will have to manually enter the income or expense for every transaction into the bookkeeping software they use. If they do it, it can take hours, which you will pay for. This time is much better spent working with you on your business. Frankly, accountants don’t like to work with clients who dump everything on them year after year. There is very little value in that type of service.
Many affordable accounting software options like Quickbooks, Sage or Xero can help you automate your bookkeeping and reduce the time you spend on it. Contact our office, and we can set you up with our software. This will make it very easy come year-end.
Limit your company to two business bank accounts if possible
Most businesses only need two bank accounts. One bank account will be a current account to receive payments and pay bills. The other will be a savings account to put money aside for taxation and special costs.
Simple strategies like
- Make sure your GST and wages, and bank accounts reconcile every month
- Keeping your CRA records and remittances up to date is easily done when you take time each week.
Keep all relevant records
You need to keep these:
- All of your bank statements in date order
- Loan documents and statements
- Sales receipts
- Purchase invoices
- Credit card statements
- Any other important information
Keep business and personal details separate
This is the easiest way to reduce your costs from your accountant. Use your business bank account for business income and expenses. Pay yourself a regular draw and deposit it into your personal bank account for personal expenses. It now becomes simple for us to focus on your business expenses.
Sounds simple? It is!
We are happy to guide you and support you if needed. This is how we add value to your business and lifestyle rather than passing on large fees that hold little value.
If you need help, please get in touch with us. We are happy to spend time if we can save you and our staff hours of work.
Our goal is to partner with and support you. We would much rather be adding value to your business.