Essential End Of Year Bookkeeping Tips To Save you Money
Pay Attention To These Helpful Bookkeeping Tips!
End of Year Bookkeeping Tips can really help you save money by cutting your accountant costs! Anyone can easily perform these bookkeeping tips steps to save money.
It’s a lot more time consuming and expensive to get organized down the road than to implement these bookkeeping tips right from the start, or along the way.
At least if you get started now you won’t be banging your head against a desk at tax deadline time, wishing you had some good bookkeeping tips to save you money.
8 Simple Bookkeeping Tips – Take charge Now!
Bookkeeping Tips: Be Consistent
- – If you reconcile your bank statement when you get it, always reconcile it at that same time.
- If you use your bank to print your checks and put that expense under, “printing and duplication,” always put it under, “printing and duplication,” – NOT printing and duplication one month, bank service charges the second month and office supplies the third month.
- To check these bookkeeping tips against your data entry run a monthly profit and loss from your accounting software.
Bookkeeping Tips: Keep Good Records
- Good bookkeeping tips help you identify:
- What your trends are
- Whether or not you should spend money on that extra latte at the meeting you are going to
- And ultimately . . . whether or not you are profitable.
Bookkeeping Tips: Don’t be afraid to look at your numbers
- It’s like making a video for your blog – the camera is an inanimate object (so are numbers).
- These bookkeeping tips help you see problems much sooner and in time to do something about it BEFORE it is too late.
Bookkeeping Tips: Daily record keeping can take 10-20 minutes a day.
- If you don’t have time for these bookkeeping tips once a day or once a week or even once a month then how will you do it ALL at the end of the year – ?
- Turn-around on your bookkeeping paperwork can take up to a month (or longer) between when you hand your paperwork off to your bookkeeper and accountant to file your taxes for you at the end of the year. That is because you are giving it to them during their busiest time of year and to be most fair, those people tackle the paperwork of the people who come in first and who have the least problems with missing information – missing financial, bank and credit card statements, missing end of year forms, missing receipts, . . .
- It took you a year to mess things up, don’t expect them to have your taxes prepared and ready within 48 hours when you have missing information and they have other clients.
When I met my husband he had a construction company. When I opened my bookkeeping business he gave me his records to take care of at the end of the year.
He gave me two large lawn garbage sacks and two paper sacks filled with receipts that were all (every-ONE-of them) folded into squares the size of your thumbnail.
Well . . . after unfolding his receipts for nearly 18 hours, I phoned him and told him, “I have some bookkeeping Tips For YOU! This one is on me, but if you ever give me your receipts folded up this way again I will charge you $500.00 an hour to unfold them.” Those receipts have been unfolded ever since.
This fee is not a joke. Among accountants and bookkeepers, it is a fee charged for clients who hate to do these kinds of tedious bookkeeping tasks as much you do.
Bookkeeping Tips: Simple Organization Steps Saves Money
Take the time to do these few simple bookkeeping things and you will see your bill reduced –
- Unfold your own receipts
- Sort your own receipts into either – Months: January through December,
- Or even better yet, by classification – Use your chart of accounts and sort your own receipts into items – Office Supplies, medical, etc . . . Even if you only have one item in an envelope – Use one envelope for each category or month.
- Label each envelope with the month and year, or each classification with the year, your name, the name of your business.
- List information on your receipts that a bookkeeper or accountant would have to call you to find out. For instance, if it is a meeting receipt, list the names of the people at the meeting, what the meeting was about and how many people were there. Here is a more thorough explanation about how to annotate your receipts.
- Attach cancelled checks to bank statements and identify any missing or confusing information so that your accountant or bookkeeper don’t have to call you and wait for you to get back to them with an answer about, “What is this?” Remember that you are being charged for their time.
- Make your own copies – Things get lost.
Bookkeeping Tips: Hire BOTH an Accountant AND a Bookkeeper
- Do NOT use an accountant to do your bookkeeping. Using an accountant to do the job of a bookkeeper will cost you an (minimum) extra $40.00 PER HOUR.
Bookkeeping Tips: Having both a bookkeeper and an accountant works for you in three ways –
1) It saves you money by not paying an accountants fee for bookkeeping
2) It gives you a checks and balance system – you have two professionals looking at your business and giving you business advice.
3) Your chances of theft and fraud are significantly reduced with two separate people looking over each others shoulder for discrepancies.
Bookkeeping Tips: Be that person who never gets a PIA Fee
At the end of the year there is a special courtesy fee that bookkeepers and CPA’s charge people who ignore this concept of courtesy. It is called a PIA fee.
Although you will never hear that term, I can tell you after having been in this industry for over ten years that it is REAL.
It is a term that is only shared between bookkeepers and CPA’s and they will DENY that it exists if you ask that question outright.
You’ll pay anywhere from $60-$160 or more per HOUR for being unorganized and selfish and that can hurt!
The time of a bookkeeper or CPA time is money during tax season. Be respectful of that.
You can plan your savings! And what a terrific time of the year to use these money saving bookkeeping tips in!
Bookkeeping Tips: Essential Tools
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