Reducing Your Accounting Fees
One of the best ways to reduce your accountancy fees is to get some decent accounting software and use it properly. It doesn’t matter that much what brand of software (we accountants are happy with MYOB, Quickbooks, Xero or any other software with a full general ledger) you use, as long as you use it properly. This means:
- Making sure you reconcile the balance on the bank register to the balance on the bank statement at each month end, NOT the last statement date which is often part-way through the month. If you don’t know how to use the bank reconciliation routine don’t worry, just make sure all the transactions on the bank statements are accurately reflected on the software.
- Ensure the amounts showing for Accounts Receivable and Payable agree to the balances showing on the general ledger/trial balance for these accounts or at least any difference is very small.
- Clear out any accounts like undeposited funds or the electronic payment clearing account and reconcile the amounts in accounts for supplier or customer deposits or similar.
- If you can BEFORE you prepare your GST returns reconcile the amounts recoverable or payable in GST ledger accounts.
- Your accountant should be adjusting the balances on your accounting software for the balances showing on the Annual Financial statements as otherwise you cannot prepare any interim or regular management accounts which are so useful for managing your business and telling you on a timely basis whether you’re making or losing money.
- MOST IMPORTANTLY of all you must LOCK the period after you’ve prepared each GST return to the date of the last GST return. It’s so easy to enter transactions in prior periods which makes a mess of the GST and probably means income or expenditure will be omitted from your Annual Financial statements.
Now many accountants more interested in feathering their own nests will tell you that you can’t use accounting software because it’s far too complex and that you’ll never get to grips with it. Well, in rare cases yes, but I find the great majority can if they invest the necessary time and effort. And the outcome? It’s wonderful – a one-stop shop for invoicing, your customer & supplier database, tracking your Accounts Receivables and Payables, time billing, job costing (the list goes on and on here) as well as reducing your accountancy fees!