Small business owners may consider outsourcing to an accountant an extra expense they are unable to afford. However, a reputable accounting company will save money in the long term, along with providing relevant information and saving other valuable resources. It is possible to keep accounting costs low so that you have the option of outsourcing.
How accountants charge for services
Accountants all charge in different ways, with some charging an hourly rate and others asking for a fixed fee for each action. Additionally, others may charge a fixed fee that is payable on a monthly basis. This is preferable for many small companies, as it makes it easier to budget. For those who charge an hourly rate, you may be granted 30 minutes without a charge so that you can discuss terms of work and costs. Following that, you will usually be billed for every 15 minutes. If you want to outsource the same duties each month, you may be given a flat rate or a fixed monthly cost. Check what the cost includes so that you aren’t surprised by any extras. A reputable accountant will tell you exactly what you will receive for a fee and any extras that aren’t included.
How to reduce costs
Do as much preparation as you can so that the work required of the accountant is lessened. This is particularly relevant if you are charged an hourly rate for duties like payrolling, as time spent sorting out your paperwork and records will all be charged for. Maintain orderly business records, with invoices and other documents filed away on the day of receipt. Consult with your accountant to find a system or software that is compatible with theirs. This will make it much easier to transfer information to the accounting company. Check that the firm will be available to deal with any queries that may arise. If you need to visit your accountant, compile a list of all questions that you have so that you spend minimal time at their office. Prior to making big decisions about the company, consult your accountant so that they can advise you on the tax aspect, rather than having to sort out a financial mess at a later date. Only outsource the responsibilities where you have insufficient knowledge and experience. Deal with areas where you are competent, and leave the rest to your accountant. By maintaining accurate and orderly business records and seeking advice where necessary, company owners can avoid being billed unnecessarily.
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We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!