5 Ways to Save Money on Bookkeeping and Accounting for Your Business

Hiring a full-time CPA to keep the books, manage accounting needs, and file tax returns is not something that most small businesses (or even some larger ones) can afford. While mega corporations have the resources available to keep these high-priced professionals on the payroll, not every business can pony up the dough for this convenience. However, you might want to put some money into professional accounting services, even if all you’re doing is investing in software like QuickBooks designed to help people with no financial background manage their money. If you think you can get by with nothing but a ledger and a pen these days, you need to think again. At the very least you need a digital means of tracking your income and expenses. And in all honesty, you should also hire a CPA to help you file your taxes, either annually or estimated quarterly, depending on your business. That said, there are plenty of ways that you can save when it comes to bookkeeping and accounting. Here are just a few tactics that are sure to benefit your bottom line.

  1. DIY. With so many tools at your disposal, there’s no reason you can’t keep your own books these days. However, if you’re going to adopt a DIY attitude there are a couple of things you need to consider in the process. First and foremost, you must do your homework to ensure that you’re managing your accounts appropriately. This is essential not only for the financial health of your business, but also in case of an audit. Further, you have to realize that the time you spend on bookkeeping will draw your attention away from other essential business management tasks. You need to weigh what your time is worth against the cost of hiring some help.
  2. Use accounting software. It turns out that accounting software not only helps you to save by ensuring that your books are properly balanced and that nothing slips between the cracks, but you can also save on accounting software. Just because QuickBooks is the most popular accounting software on the consumer marketplace doesn’t mean it’s your only option. And if you’re looking to cut costs you should definitely comparison shop and even consider free or open source products.
  3. Stay up-to-date. A big part of saving via your bookkeeping and accounting practices revolves around taxes, and specifically around the laws pertaining to deductions, credits, and other incentives related to businesses, or to your type of business in particular. You therefore need to stay abreast of changing laws to ensure that you always know what can help you to reduce the amount you owe the IRS or increase your return. Although you will have to pay a tax prep specialist for help in filing your taxes, their knowledge of laws could save you enough to make the expense well worth your while.
  4. Hire a temp. If you can’t afford to hire a full-time bookkeeper or CPA, consider hiring part-time or seasonal workers. There is no shortage of freelancers in the accounting field, so you should have no problem finding the services you need piecemeal.
  5. Take classes. Whether you decide to go through bookkeeping training, you take an accounting course, or you find a local class that teaches you how to use your business accounting software, it’s in your best interest to learn all you can if you want to save money by attending to the financial needs of your business on your own.

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