Have you ever found yourself thinking, ‘I’m in the wrong job’ after being presented with your Accountant’s fees for your year-end tax work? You are not alone! Many small businesses fail to see value in the amount they spend with their Accountant. To minimise unnecessary accounting fees for year-end tax work, and maximise the value of working with your Accountant, follow my top five tips.
1. Use Accounting Packages
Learn to use your accounting package correctly and understand the effects of processing transactions to the Profit and Loss (P&L) or Balance Sheet. The better you understand these figures and what can impact on them, the easier it will be to spot when you have made an error in your allocation. If you are not confident with this, or you do not have the time to do it properly, then make sure you engage the services of a reputable and qualified bookkeeper.
2. Does It All Add Up?
Reconcile as many of your balance sheet accounts as possible, e.g. your transactional bank account and credit card account. Make sure your balances match your bank statements, ensure your GST accounts match your final BAS for the June quarter, reconcile your wages accounts and make sure they match the PAYG payment summaries you have compiled.
3. Be Prepared
Present your information in an organised and methodical way. Ask your Accountant for a checklist of what they require and have these items prepared for them. Ensure things are totalled and clearly labelled. The more time an Accountant has to spend adding things up, or searching for things and then waiting on you to provide them, the more it ends up costing you.
4. Shop Around
Find an Accountant that suits your budget and requirements. Many small businesses don’t need a top end Accounting firm with expensive offices in the city — and often these large Accounting firms are not in touch with all of the issues relevant to small businesses. Your local Accountant can probably provide you with more cost effective services, without compromising on quality. Also, some Accountants are moving towards packaged fees. Ask your Accountant if they are willing to lock in an annual price that you can pay in monthly installments. Your Accountant may also provide free email or telephone advice – this may be something of great value to you. Lastly, consider working with your Accountant’s staff rather than the owner directly – they will often be cheaper but just as knowledgeable on small business issues.
5. Maximise Meetings
Before meeting with your Accountant, take some time to prepare. Think about any business issues and questions you might have – and write them down! Talk to your Accountant about any challenges you are having or opportunities that you would like to explore. Use the time wisely and minimise personal chit chat.
Most Accountants prefer to spend their time actually helping their clients to grow/impact their businesses, rather than filling out the required tax forms for the year. They enjoy helping you utilise the money you spend with them to your maximum advantage. Ensure you are prepared and organised before you visit your Accountant to facilitate this. Don’t dump a disorganised mess on your Accountant as this makes them a very expensive data processor.
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