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Solutions to Reduce Your Accounting Expenses

Mani Malarvannan

July 26, 2007

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A good number of small business owners overlook the basic importance of accounting and bookkeeping to curtail regular expenditure. You may often come across many other small business houses that are in constant search for lower and lower account expense. Every small business owner knows that major portions of account management costs are eaten up by accounting software and accounting professionals.
Is there any solution that can save our accounting expenses!

Using Accounting Software

If you are not using a small business accounting software, consider using it right now. Small business accounting software will empower you to manage your accounts and financial information effectively. It will also reduce the time and money spent on overall accounting. Effective use of small business accounting software can make it possible to review all the data relevant to accounts payable, accounts receivable, invoices, and inventories. Such software may also be used with other popular software such as Microsoft Office for better results. By reducing personnel needed for accounting not only are accounting expenses reduced but also the possibility of errors in accounting is reduced drastically.

Outsourcing Accounting to an Offshore Service Provider

Outsourcing accounting and financial related tasks to an offshore service provider can reduce accounting costs significantly. Small business owners can avoid hiring full-time or part-time accounting professionals; instead they can use an offshore accounting services provider for all their accounting tasks. Many small businesses have reported savings of thousands of dollars by outsourcing to a reliable and competent service provider capable of providing accounting services like bookkeeping, business taxes, accounts payable, accounts receivables, and account settlement. One such example is of a real estate company in St. Paul, MN that benefited from the expertise and experience of Cybelink, an offshore service provider. Cybelink translated the company's accounts, which were mainly in Excel files and converted them into QuickBooks. This change in accounting allowed the client to review easily the weekly, monthly and yearly reports of financial transactions of the business. The accounting system set up by Cybelink allowed the client to communicate easily with their CPA and helped the real estate company to make informed business decisions.

Accounting Processes Standardization
Small business owners should see their entire accounting processes and standardize them within their company. The standardization should occur within their accounting processes and in their technology. For example, if two different employees engaged for accounts receivable and accounts payable and say if they use the customer list stored in two different computers, it is a problem. As a small business owner you should ask following questions:

• Can these two different processes be combined?
  
• Why the customer list stored in different computers?
  

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