Why Your Accountant Cost So Much?
One of the biggest complaints SME businesses have about accountants is that they cost too much to process year end accounts and tax return. Sound familiar?
Why are the fees so High?
The most common reasons SME business year end accounting fees are so high is because the records given to the accountant to do this work are:
Or a combination of these. This means your accountant has to waste unnecessary hours (that you are paying for) getting your books in order and up to date to then begin the task of calculating your tax bill. The simplest solution to this is for YOU to keep your financial system up to date and keep all your files and records (invoices and receipts) nicely filed.
Choose a User friendly Accounting System
Lets face it, most SME businesses in Australia, who have a financial system, use MYOB. It is not the most user friendly system for non accountants to use. But boring old accountants love it that’s why they put it in to their clients. Missing the point! The clients don’t like it, can’t use it and things end up in a mess. And guess what… your accounting fees are high! Conspiracy theory???!!!
One simple, effective and very cost efficient solution could be Xero.
Xero is the next generation (which is here now – for all you boring old bean counters out there – so watch out!) online system. No more buying a system and installing it onto your machine and then struggling to lean how to use it… oh no! Not here! Not with Xero!
Xero is very easy to use because it is in your language – no Debits and Credit here. Plain easy to use functions. Online video tutorials and help functions again speaking your language.
Another bonus… it downloads your transactions from your online banking – saving on data entry! Not only that but your accountant can log in from their office and see your data live without you needing to go and see them and they can assist quicker, easier and cheaper than the old way of you going to their office!
And all for a simple monthly fee that is much much cheaper than MYOB.
Keep your books up to date
Another key reason is where the “books” (financial system) are not kept up to date. This means there is either a mad rush by you but more likely your accountant to get things up to date, to then calculate your tax bill. If the frantic last minute updating is done by you odds on there will be errors or things missing like bank reconciliations. These are key tasks, simple but key, that need to be done in order to make sure your tax is calculated correctly. Either way if you leave it to the last minute and make mistakes or let your accountant do the data entry it costs you way more than it should.
The key things accountants need to make their job easy and thus cheaper are:
•Bank Reconciliations completed and all reports printed and filed each time with copies of the bank statements
•BAS Reports calculations and the returns themselves filed in date order
•Copy of your General Ledger with all transactions coded correctly for GST
•Copies of Payroll summary reports as given to the ATO at year end.
•Any important receipts and documentation regarding transactions during the year filed in logical order
Our suggestion – simple – get a part time bookkeeper to keep your books up to date. It might cost you a little money but it will be cheaper than your accountant doing the same tasks.
The end result you want…
Things are nice and neat and tidy for your accountant and your accounting fees should drop significantly. You can then spend more time with your accountant analysing your business for future growth rather than worring about Tax Returns and Tax Bills.
Avegna are proud to recommend Xero to their clients and will assist any businesses to set up and run their Xero.
For further information and a FREE trial go to www.xero.com
For any further information on the issues covered in this article please contact us. We offer a free, no obligation initial consultation.
CEO of Avegna