How can I keep my year end and tax preparation costs down?
The best way to keep your year end fees lower is to have good bookkeeping practices. At Gilmour Knotts, we charge a standard fee for the preparation of the financial statements and for the preparation of the corporate tax return. Additional fees may be charged if there is extra bookkeeping work required before these documents can be completed. Having good bookkeeping practices already in place can lower these additional costs.
To help lower your year end fees we provide you with a year end checklist which details all the information that is needed to be supplied to us when you bring in your company’s year end. Having all your company transactions recorded and accounts reconciled in a computerized accounting system (Simply Accounting or Quickbooks) is a good place to start. Providing us with a copy of the electronic data allows us to open that data and investigate any transactions or details about the company that occurred throughout your fiscal year. It also allows us to import this data into our financial statement preparation software easily. However this alone does not guarantee lowering your costs.
There are balances in your electronic data that need have supporting documentation. Some common examples of accounts requiring support are: bank accounts, accounts receivable and accounts payable, GST/PST, payroll remittances and corporate tax balances, company loans or credit cards, capital asset accounts and any other unusual transactions. Other supporting documents on our checklist are also required in order to complete our year end work such as year end copies of the bank statement, GST return, payroll remittance form, invoices for new assets purchased, new loan or lease documents, home office expenses, etc. If these balances are not correct or these supporting documents are not provided, then more time spent by us to investigate why the balances are not correct or chase you for the documentation.
Having a good bookkeeper on hand is crucial to keep costs down as a proficient bookkeeper will investigate balances and gather supporting documents, process transactions and reconcile accounts prior to delivering the file to our office.
If you have questions concerning the how to lower your costs on the preparation of your company’s year end financial statements and/or corporate tax return, please contact us for help on this issue. for our help on this issue.Download a copy of this issue