Warren buffet once said, “In the long run managements stressing accounting appearance over economic substance usually achieve little of either.”
And we definitely do not want little of anything that is good…Isn’t it…??!!!
Here we present 4 simple ways which will help you to decrease Accounting Costs for Small Businesses:
- How about a long term program!!
For reducing accounting costs for small businesses, you can hold a full-fledged program across all departments of company, comprising your accounting department. During this program, you can decide to cut down on unnecessary slants. But while doing this make sure that you need to be alert about safeguarding company’s development aspects. This will not only intend to increase your profit but also eradicate wastes from accounting point of view. Bringing down accounting costs for small business is quite an edgy task and must be done very cautiously.
2. The 5S:
Individuals keen to cut down the accounting costs for small businesses, generally apply the 5S concept which is a simple and systematic procedure to get the desired result. These 5S can also be called as the conventional way of slashing down accounting costs for small businesses. So what are these 5S; let’s study them closely:
- Sort: In this step, you need to discard all unnecessary or non-required things, thereby you indirectly choosing or sorting the stuffs you actually want.
- Straighten: Here, you are expected to rearrange your office objects so as to make optimum utilization of everything during the process flow.
- Scrub: This stage suggests you to clean and make the place tidy in order to bring things in place as well as easy movement of people and furniture.
- Systemize: This phases urges you to draw a structured cleaning plan. In other words, here you need to chart out a plan of action stating when and how you are going to the cleaning task.
- Standardize: This step means implementing all the 5S in your organization. Your work doesn’t end here; you also need to monitor if the 5S are being followed diligently or not.
The 5S is a classic method and seldom fails to yield revenues and also helps in decreasing the accounting costs for small businesses to a great extent.
3. Contracting it out!!
Accounting costs for small businesses can also come down if you outsource the accounting process to an external agency or Accounting outsourcing service provider. They take over all your accounting worries leaving you with plentiful of time to concentrate on your core business and also making you tension-free about separate staffing for accounting purpose. You pay them a fixed amount every month according to the work and get round the clock reporting as and when you want. Doesn’t this sound as a great idea…??!!!
4. You can lean on Lean Accounting!!
Organizations that practice lean accounting follow n on-traditional method of accounting. With this method you can get timely report as this is a very employee-friendly technique. This process pays attention to the value crated by customers of the respective business. This earns you:
- Lowered costs
- Better Cash-flow
- Increased number of customers
Thus making this mode as one of the most successful approach to lower Accounting costs for small businesses.
Source: IBN Tech blog