Bookkeeping Secrets – 5 Ways to Save Money
Here are five great ways to help control your bookkeeping costs and prevent unexpected “extra” charges at tax time. The secrets as presented build upon each other, and when combined result in an efficient and effective bookkeeping system.
Bookkeeping Secret #1: Do Some of Your Own Data Entry
Our countdown begins with the suggestion that you learn how to properly enter in some of the information yourself and avoid having to pay a bookkeeper. Your focus here is to enter in the easy but important information, such as your business’ sales. Typically, it is not useful to enter in all of the information yourself as your time should be too valuable to be spent on bookkeeping duties.
Bookkeeping Secret #2: Get a Good Bookkeeper
Hiring a good bookkeeper is very worthwhile; they can data enter your business’ information faster while you spend your time on other tasks such as making your next sale, or being available for your family. Beware: a bad bookkeeper can really hurt your business and quickly increase your accounting fees at tax time, when your accountant must fix and/or redo all of their work. The bad bookkeeper has effectively stolen from you by not providing value.
Bookkeeping Secret #3: Hire a Professional Accountant
Retain an accountant. Remember both your work and the bookkeepers’ work should be checked by an accountant. Don’t wait until the end of the year – errors just compound and are hard to figure out when you can’t remember what you were trying to do. Having your accountant regularly check the work throughout the year decreases the chance of costly mistakes and gives your accountant the opportunity to suggest ideas that can help your business succeed. For example, an accountant is better able to help you minimize
your taxes and provide advice on how to deal with changes when quality up-to-date financial information is available.
Bookkeeping Secret #4: Keep Proper Records
Properly organized and stored documentation is a key way to save your business, and everyone involved, time, money and stress. Finding lost or misfiled documents during a government audit is the worst time to have to search for files or receipts. Ensure you have your business and financial documents, (invoices, billings, etc…) stored in an easy and efficient manner. When you have to refer back to these filed documents months later you will save yourself costly delays if you know exactly where to look.
Bookkeeping Secret #5: Use the Right Accounting Software
Using tools specifically designed for your business size is vital. Don’t use complicated accounting packages created for use by larger businesses. The right tools for you should be simple to use by everyone involved in the financial process. New online financial systems are especially great options for small businesses given their improved abilities to share information and to provide regular, offsite data back-ups.
Implementing any of these five suggestions can help you avoid those nasty, unexpected bookkeeping charges and keep your business finances running smoothly. Happy bookkeeping all!
For further information, Christopher Stasuik, CPA, CA, MAcc can be contacted via his firm’s website, www.stasuik.com.
The blog posts made available by Stasuik are for educational purposes only and not to provide specific tax, accounting, business management or professional advice of any kind. By using this blog site and/or blog posts you understand that no accountant-client relationship is created between you and Stasuik. The blog posts should not be used as a substitute for competent professional advice from a licensed professional in your jurisdiction.