Empower Your Business

Accounting is Just the Beginning

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Reduce Your Accounting Costs

Rather than shopping around for the cheapest possible accountant you’d be much better off making your accounting as simple as possible, as this simplicity will be reflected in your accounting fees.

Here are 10 easy ways to keep your accounting simple:

  1. Use one business bank account and one savings account

  2. Take regular fixed drawings into your private account rather than paying all your private expenses from your business account

  3. Don’t give your accountant a shoebox of receipts and bank statements (half-missing), instead use an easy to use accounting software or get your accountant to keep your books on software which can import your bank transactions

  4. Don’t use home-made spreadsheets. These get corrupted and more often than not, are worthless as there’s no link to your business bank accounts

  5. Avoid using cash, your credit cards or your personal bank accounts to pay business bills, instead pay all your business receipts and payments through your business bank account

  6. Using Bartercard or similar cards makes your accounting particularly complicated

  7. If you have more than one business or entity, pay the bills for that entity from that entity’s bank account and make sure all receipts are paid into the right entity

  8. On that topic, keep the number of businesses or entities you have to the minimum, use trading names instead

  9. Avoid foreign currency bank accounts which make your accounting more complicated still

  10. Pay all your bills and tax on time. Accounting for late payment fees, penalties or interest can be very complicated.

Do you yourself and your accountant a favour, he or she likes an easy life too! If you need help to reduce your accounting costs contact Nick on 0800ASKNICK or email nick@abac.co.nz.