Three Tips To Save Money On Your Bookkeeping Fees
Owning a business has many perks – the freedom to choose when, how and where you work, and the ability to make all of the big decisions about how the company runs and operates. But it also comes with many responsibilities that, if left ignored, can dramatically affect the efficiency of your business and increase your expenses. As a business owner, you’ve likely noticed that it doesn’t take long for the cost of these responsibilities to mount up and become hard to manage.
Thankfully, not every cost has to continually increase. Expenses like bookkeeping can be effectively managed and decreased with a little bit of ongoing effort of your end. The following tips will show you just what you can do to lower the costs associated with your company’s bookkeeping fees, allowing you to spend more of your money growing your business instead of just managing it.
Document Management
Lack of organization is any business’s biggest fault – it causes disarray and stress while also costing business owners precious dollars. Fortunately, there are many different resources that exist to help you stay organized without having to dedicate a large portion of time to doing so. These resources should be taken advantage of to help your business run smoothly. When it comes to managing your financial documents, software such as Dropbox and Smartvault are a great place to store electronic versions of your paper documents. Simply snap a photo of any receipt, invoice or contract and it will automatically store and sort it. Your bookkeeper will love you if you send him/her an online file with meticulously organized and detailed expenses, and you will love yourself for spending a bit of time throughout the year to dramatically reduce your bookkeeping costs.
Keep Business & Personal Expenses Separate
A fatal mistake that will not only cost you extra in bookkeeping fees but may also land you in trouble with the CRA is combining your business and personal expenses. While there are circumstances that you can easily write off your personal expenses with your business, there is a line that needs to be drawn eventually. The bookkeepers at SBBS are experts at writing off expenses, but you need to make sure that certain expenses such as mortgage payments, groceries, home insurance, your kid’s clothing and miscellaneous things are kept separate from your business expenses. This takes a very small amount of your time and is very easy to implement – simply keep your personal receipts in a different box than your business receipts. You’ll be glad you did!
Communicate With Your Bookkeeper & Accountant
If you’re looking to reduce the costs associated with financial management, a great way to start is by simply speaking with your bookkeeper and accountant. As long as they are open and honest (which you may have noticed is hard to find in the industry), they should share with you different ways of saving money. Remember, your bookkeeper and accountant should be on your side – if they are unwilling to provide you with different ideas on how to save money, you may want to consider finding someone who is.
Organization Is Key!
Regardless of the type of business you own or how big or small your company is, the key to success is staying organized. This helps you maintain a feasible budget which in turn makes it easier for you to invest in business strategies that will allow your company to grow and thrive.
If you read our earlier post “Small Business Finance Management Tips” you probably noticed the importance of organization. It really can make or break a company.
