Start-Up Tips: Saving Money on Accounting Costs

Accounting costs can be decreased through several proprietary online accounting programs including QuickBooks or AccountsPortal. These programs are simple to use, can be purchased with a few clicks on the web, and don’t need to be installed as they are entirely web-based. In addition, most accountants are familiar with these programs and do not need to spend time training to use these programs. These software programs provide a great value for a start-up company that does not have complex accounting requirements, such as recording deferred revenue amounts or monitoring inventory in a manufacturing setting. Online accounting programs including QuickBooks or AccountsPortal work well with the reporting requirements of companies in varying industries selling varying products.

Some start-up companies may cut costs by using a third party consulting company. If the accounting needs of a company requires a limited number of accounting transactions, a consulting party that offers bookkeeping services may be a better value than hiring a full-time accountant. Often times, this brings a level of professionalism to the position that represents better financial records at lower cost.

As an owner of a business/start-up, it may make sense for the owners of the business to assume the accounting functions in an attempt to save costs. By running the accounting system, they will expose themselves to the daily financial data of the organization, which may allow them to make more appropriate decisions. Owners need to have an intimate knowledge of the business to make logical sense given fiscal constraints. Having familiarity with the company’s financial data will aide an organization’s owners immensely. However, they would have to be qualified to complete the accounting functions well.

Start-up businesses can cut accounting costs in a variety of ways. These can include using proprietary online accounting programs, using a third party consultant, or having the owner assume accounting responsibilities. However, having an adequate system to record and document your financial records is essential so make sure you devote the resources to maintaining a proper accounting function.