ness checking account for telephone or online transfers. Deposit all daily receipts into the money market account where they will immediately start drawing interest. NEVER deposit receipts directly into your checking account. Keep a minimum balance in the checking account and transfer cash only as needed to cover checks written. The interest generated by this simple procedure amounts to found money that will flow directly to your bottom line. tip
3
Give your accountant a cut in pay
Sure, you hate paperwork and record keeping. Don’t we all? But if you find yourself scrambling to find receipts and other records at tax time every year, you’re probably costing yourself some real money. “In the accounting and legal professions, time is the product,” says Carol Katz, CPA, Leonard J. Miller & Associates, Baltimore, MD. “So, the less time it takes the less the
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product costs.” CPA Tom Normoyle, Huntingdon Valley, PA agrees. “When clients present me with a shoe box full of unsorted papers, I have to charge them for the hours it takes to make sense of them,” he says. “A simple filing system that separates records of different types is one sure way to reduce my fee.” Normoyle says that even the simplest of systems, one file for income and one for expenses can be a money saver. But going a step further by separating expense files into categories such as payroll, office supplies, charitable donations, capital purchases, and taxes can really make a difference in how much time it takes to prepare tax returns. Genevia Gee Fulbright CPA, Senior Finance Advisor with the National Association of Black Accountants adds, “A great way to save money on accounting bills is to use accounting software that is compatible with the software your accountant uses.
“And remember, accountants like things to be in balance, so make sure that you or your office manager reconciles your bank statements each month. This will reduce fees by eliminating time your accountant has to spend tracking down unaccounted for outstanding items.” tip
4
Save money even while you’re paying bills
No one enjoys paying bills. That’s why we sometimes postpone that nasty job to the point of risking late payment fees and stains on our credit reports. Paying bills may never be fun, but new technology has made the task quick, easy, and a little less costly. Nearly all banks are online these days and most offer free (or almost free) online bill paying. Once you sign up and choose a password, you log on to the bank’s web site where you enter the payee’s name and address, phone number, and the amount to be paid. The bank takes over from there,
Fabricator n January/February 2005