How to Reduce Your Bookkeeping Costs
A bookkeeper is essential to both established businesses and startups for a variety of reasons. From providing timely financial records, and management reports to managing cash flow used in ongoing business decisions. Although essential to your business as it grows so may what you are outlaying on bookkeeping fees. Here are 5 ways that you can make the most out of your bookkeeper while still being budget saavy.
1. Technology: Having up to date processing speed of computers, in-house networks, and internet connections, can play a large role in the speed that work can be done. “Businesses are experiencing significant reduction in processing time moving to cloud based systems as well, (source).”
2. Organization: This is probably the most important tip when looking at saving money on bookkeeping. By being organized you are going to speed up the process of getting vital information to your bookkeeper and therefore speeding up your bookkeepers own processes. “Bookkeepers can only work with the documents you give them, so the more information you have on each transaction the better, (source).”
3. Time Tracking: By tracking time on bookkeeping duties you can keep in touch with any areas that need work. “Track the time it takes to complete typical bookkeeping duties; Filing, data entry, paying bills, chasing debts, payroll, producing reports. Address excessive time spent on tasks by reviewing and re-developing existing processes or further training, (source).”
4. Document Management System: This tip is essential when looking at speeding up internal processes while also utilizing fast new technology systems. “Instead of filing receipts away in a shoebox and posting them to your bookkeeper when requested, now you can take a picture of your documents (receipts/invoices etc.) and upload them to a cloud based document management system. This allows you to securely save a copy of your important financial documents which can then be accessed by you at any time, (source).”
5. Writing Off Incorrectly: “Purchases must be logged correctly in order to provide you with accurate numbers when filing your taxes, (source).” Failing to keep track of receipts and purchases leads to confusion and difficulty when trying to recall immediate purchases or large expenses. A major expense like a new server should not be written off as a direct expense, but rather should be depreciated over time.
Having a bookkeeper can save you a huge amount of money over the long run and ensures your books are kept correctly. This is essential to overall increased business function and less stress when it comes to submitting taxes and keeping track of payroll. Ensuring bookkeepers are trained correctly ensures staff with specialized training geared to improve productivity. Contact eMerge for more information on managing bookkeeping costs and you’ll see how I work productively to maximize your money. Contact me immediately to get started on having your books done correctly!