How to Minimize Bookkeeping Costs

How to Minimize Bookkeeping Costs

Every business owner knows that managing an enterprise takes a lot of time and money, especially when it is just at the beginning stages.  When it comes to bookkeeping costs, however, this doesn’t have to be the case.  In this article, let us take a look at three possible ways in which you can minimize your bookkeeping costs.

1. Keep everything organized.

The simple task of keeping all your records organized can go a long way in reducing your bookkeeping costs.  The more details you have regarding each transaction, the easier it will be for your bookkeeper to do his or her job.  Whenever you pay a bill, take note of all the details involved, such as the date and method of payment.  This is particularly useful especially if you are handling more than one account.  Likewise, if you provide only invoices and not the payment receipts themselves, bookkeepers will not be able to record these until the transactions show up in your monthly statement.

In any case, it would be a wise idea to ask your bookkeeper directly how he or she wants you to present your transaction details.  This way, you are able to provide them with all the information that they need to keep your records updated.  Hence, by being organized, you are able to work efficiently with your bookkeeper, regardless of whether you are paying them an hourly rate or a fixed monthly fee.   

2. Separate your business accounts from your personal accounts.

Do not make the mistake of using a personal account for your business; otherwise, this will only make your records complicated and confusing for the bookkeeper to work with.  Moreover, whenever you are paid in cash, avoid the temptation of keeping some of it for yourself.  Instead, deposit it directly into your business account.  By doing so, you are able to avoid problems when the bookkeeper is matching your account deposits.  Again, this cannot be emphasized enough: keep your personal and business accounts separated.

3. Utilize a document management system.

In the olden days, business owners would store receipts in a file or a shoe box, which is then brought out when the bookkeeper comes.  The problem is, there are times when a receipt is misplaced or records suddenly get damaged in a fire or flood.  You can avoid this problem by utilizing a document management system.  This enables you to save a copy of your records, which can be accessed by you or your bookkeeper anytime.  There are many document management systems available that allow you to save your financial documents online safely and securely.  They are a great way of organizing and managing all your financial transactions, making things easier for your as well as your bookkeeper.

Keeping your records organized, separating your business and personal accounts, and utilizing a document management system are just some of the ways in which you can minimize your bookkeeping costs.  In this manner, you are able to save money and increase your returns in the process.

Tamara Deterding

Written by : Tamara Deterding