Minimise compliance costs, maximise business value

Hamish Mexted Business Strategy & Planning, Increasing Profit

For many businesses, accounting fees are just another overhead.  To help you keep a bit more of your hard-earned money, we’ve put together 5 quick tips to minimise your accounting fees:

  1. Do your own day-to-day accounting using Xero – this cuts down the time it will take your accountant to do their job.
  2. Be accurate with Xero and stay on top of it – log into Xero reguarlly and be accurate with your data entry.  Garbage in means garbage out – if you’re accurate your accountant won’t spend time correcting errors.
  3. Think about what you want from your accountant – when you know what you do (and don’t) need help with, you can keep them focused on the things that are important to you.
  4. Make sure it all looks right – do the numbers in your accounting software look correct?  If not, ask yourself why and try to get to the bottom of it.  For example check that the bank balance in Xero is the same as what’s showing in your internet banking.
  5. Provide all the information at once – the more often your accountant picks up and puts down your job, the more your bill will be.  Try and get all the information they need into them at the same time.  If you’re unable to, make sure you provide the additional information they ask for promptly.

To help give you certainty around your potential fee, we recommend using an accountant who will give you a fixed price quote.  This gives you the certainty to manage your cashflow, and gives you a detailed understanding of exactly what’s included in the price.

Once you’ve got your compliance costs down, you’ll have more free funds to build your business.  These free funds could be used for a review of your cashflow management or to see you’re operating as tax efficiently as possible.  Alternatively you could get help with some monthly management reporting or go through a business planning exercies.  On the other hand you could use the funds to take a holiday and go back to work more energised.  Whatever you decide to do with the overhead saving you’ll be increasing the value of your business.