How to Save Money on Accounting Fees

You might, at first sight, be surprised that we are providing advice to our clients on saving money on accounting fees. However, it is in our long-term interests to ensure that your fees for your accounting and tax work are minimised since if you are paying too much, you may be tempted to look elsewhere. In addition, if you are budgeting for a fixed amount of expenditure on accountancy fees, we would much rather you invest your hard earned cash in our business advisory services which are likely to improve both your annual profits and the value of your business in the longer term.

These are some of the easy ways by which you can keep our fees to a comfortable level: 

  • Don't use your business bank account for personal items of expenditure. Estimate the amount you need to live on for the week or month and then make a regular transfer to your personal bank account. Not only will this help you budget for personal and household expenditure but in addition, this will also save you money on bank charges. For us to analyse all your personal expenditure takes time and time is money.
  • Have as few bank accounts as possible. The more bank accounts you have, the longer it takes us to prepare your figures and the higher your accounting fees. Again, this would also save you money on bank charges.
  • Ensure your accounting records well organised and as accurate as you can make them. The better they are, the less time we will spend and the lower your fees. Seek our advice on the most appropriate system for your needs. These days, bookkeeping software is easy to use and very affordable. Alternatively, we can save you the hassle and maintain your accounting records and prepare your GST returns on your behalf for a fixed fee.
  • Make sure you maintain your accounting records on a regular and timely basis. The more frequently you maintain your records, the quicker it will be and easier for you to remember the nature of the various transactions. Even if you meet the criteria for preparing your GST returns on a six-monthly basis we do not recommend that you do so.
  • File away all invoices and paperwork in a logical order (whether numerical, chronological or alphabetical), cross-referenced to the transactions in your accounting records. Not only does this make documents easy to find, but also in addition this means you won't lose anything and won't have to pay your bank, for example, to obtain duplicate statements or us to contact third parties for copy paperwork.
  • As well as all the normal information (such as bank statements and invoices), supply as many of the schedules that we will need to prepare your end of year financials as you can. The more information you supply, the less time we will take and the lower your fees are likely to be. Consider the following:
  1. A list of your accounts receivable or debtors.
  2. A list of accounts payable or creditors, which should include any amounts owed to the IRD as well as your usual business suppliers.
  3. A list of stocks and work in progress showing cost values.
  4. A summary of additions or disposals of fixed assets during the year, with copies of invoices attached.
  5. Copies of any hire purchase, lease or loan agreements taken out during the year.
  6. If you work from home, a summary of all your household expenditure together with details of how much of the house you use for business purposes.
  7. Notes of any unusual occurrences, such as insurance claims, theft, or capital introduced.

It's your hard earned money at stake!