|
Accounting fees are not a luxury.
There may come a time in the life of any business when the
owner(s) decide they need to do something about profits especially
in periods of economic uncertainty or decline. There are two
ways to increase profit. 1. Try to increase revenues (sales,
services, rents, commissions, etc.). 2. Try to decrease expenses.
The first instinct naturally is to cut out the "luxuries"
and we all different thoughts on what is a luxury and what
is a necessity. At the second look at our bottom lines, we
may start to think about cutting payroll (people and/or hours)
and do ourselves what we hired people to do.
We feel that Accounting and Bookkeeping is not a luxury and
is in fact a necessity. If you currently are on a regular
schedule, you are already aware of your financial position
on a monthly basis. Switching to a quarterly schedule will
save you some money in the short-run but at a different kind
of cost. Furthermore, there are those that still go to their
Accountant once a year. While this can save the most "money"
maybe in monthly fees, the real cost is the planning throughout
the year and knowing where you stand. The most basic is being
hit with that tax bill you didn’t plan for then there
may be some penalties involved for not making quarterly estimated
payments.
To sum this up, it is like going to the dentist once a year
without having brushed your teeth all year long. Oh sure,
you may have even bought that bargain toothpaste and flossed
once or twice and felt like you were saving money. But, don’t
blame the dentist when you need three cavities filled or at
worst a root canal.
|
|
