Six ways to save money on your accounting fees

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This post is by Giles Ellis, Director at GECA Chartered Accountants based in Newmarket.

save on accounting fees

Let’s face it – no one likes paying to get tax returns done, especially when there is a set of financial statements to be done as well. And at GECA Chartered Accountants, where our purpose is to provide affordable expertise with a personalised service, we are doing something about it.

So here are six easy ways to save on your accounting fees each year:

1. Leverage technology

Utilise technology to do things that previously you would pay your accountant to do. Let cloud based software such as Xero automate previously labour intensive tasks done by the accountants such as bank reconciliations.

2. Keep comprehensive records

Keeping accounting fees down is about reducing time spent on your work. Modern accounting software allows you to attach invoices and receipts to each transaction in your accounting system, meaning queries by the accountant can be dealt with by referring to the attached documentation.

Compare this with the inefficiency inherent in the client keeping the records offline; requiring the accountant to contact the client, request the record, receive it and then finally be able to answer the query.

3. KISS (Keep it simple stupid)

I constantly meet people with incredibly complex structures for a relatively simple situation. Often the original reason for these structures no longer applies and yet they are still required to file annual accounts and tax returns.

Review your structure. Understand why it was set up and if it is still warranted. Whilst a liquidation might cost $2400, the on-going savings in annual compliance costs will soon outweigh this.

4. Get a fixed fee agreement for your compliance work

Traditionally, accounting work has been charged on a time and cost basis, exposing the client to unexpected costs and reducing the onus on the accountant to work efficiently.

Progressive accounting firms such as GECA now offer their clients fixed accounting fees in an agreement to provide transparency and certainty of compliance costs. If your accountant isn’t offering fixed fee agreements, find one who is.

5. Don’t use a tax refund service

These services offer to process your refund from the IRD for a commission ranging from 5 to – wait for it – 15%! Instead log on to the easy to use IRD website and process your own refund – for free.

6. Simplify your investments

PIE funds are tax exempt meaning they do not need to be included in a tax return. They are also taxed at 28% instead of the top personal rate of 33%.

Compare this with foreign investments subject to complex and expensive to prepare tax calculations with unrealised capital gains subject to tax. So swap those investments to PIEs and save some accounting fees.

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So there you have it. Six easy ways to save money on your accounting fees. At GECA, we offer a range of accounting and taxation services. So if you want to save money by working with an accountant whose purpose is to provide affordable expertise with a personalised service, then we can help.

Call Giles at GECA Chartered Accountants now on 0800 758 766 for a free, no obligation discussion of your requirements.