As a business owner you will generally need to appoint an accountant to prepare your annual accounts and necessary tax returns. But how can you keep the accountancy costs down to a minimum?
Ensuring that your records are available at the earliest possible opportunity after your year-end will mean that the accountant can provide you with the best tax planning opportunities, in order to save you the most amount of tax. In addition to saving tax you will also be informed of your tax liability as early as possible, giving you longer to organise your cash flow.
Providing your accountant with your records late or close to your filing deadlines may cause unnecessary overtime charges and late filing penalties.
Matched to bank statement
If you ensure that your accounting records match your bank statements accurately, your accountant will spend less time reconciling your bank account to the financial accounts. This will mean a reduced level of accountancy fees, but also the accountant can spend more of their time on tax and strategic planning which gives you better value.
When you are updating your records, ensure that you include reference numbers on all of your invoices (sales and purchases) and include that number in your bookkeeping records. This will make it quicker for you and your accountant to answer any queries.
When you are entering your business expenses, include the category of the expense such as motoring expenses, travel, rent and rates, etc. This will save your accountant time and therefore reduce your costs. It will also make your records far more useful as you will be able to identify where you are spending most of your money.
If you are using a computerised software system, ensure that you use the most accurate nominal codes. If you are using a manual cashbook or Excel spread sheet, ensure that you use analysis columns to show the net cost for each expense heading.
Outsource your bookkeeping
If you are short of time or simply dread bookkeeping, then outsource to a good bookkeeper. Having a reliable bookkeeper will reduce your year-end accountancy fees, as your accountant will be able to place reliance on your bookkeeper.
Having a bookkeeper will give you more time to spend on your business, allowing you to generate more income.
Alternatively, as a Trinity client you will have access to our online bookkeeping portal. This will allow you to create your sales invoices, enter your business expenses and keep a track of the business financials, 24/7, anywhere in the world.
If you would like to discuss your business accounts and how we can help you reduce your accountancy fees, with one of our accountants, please do not hesitate to contact us.