2022 is here, which means that we can wipe the slate clean, look ahead at a brand-new year and maybe make a resolution or two. When it comes to your business and accounting needs, an essential detail to focus on is a resolution made specifically to enhance and ease the accounting part of your business. That may sound like a big ask, but with small steps getting on top of your business accounts is a lot easier than you may think. What you need are…
Practical and achievable accounting new year’s resolutions
When it comes to numbers and organisation within the accounting section of your business, the right resolutions make all the difference:
- Go through your receipts regularly: Receipts pile up quickly and they can be a nightmare when looking to put together expenses and income. Separate them, pick a day at the end of each month, and go through them. If that pile takes all day, then do it weekly. It’s going to be much easier knowing that you’ve kept on top of it, both from a financing point of view, and a ‘checking’ it all later if you need to find something. We highly recommend Dext, to store digital copies of your receipts so no need to keep paper!
- Have extra? Tuck it into a “rainy day” fund: If you have extra after paying expenses, payroll, etc., then put it in a fund for ‘anything unexpected that might crop up.’ After all, a repair here or a replacement there can be made easier if you’ve got some funds put by. If you follow Profit First like we do, you will naturally build up a rainy day fund as part of the process.
- Set monthly or quarterly financial goals that are challenging but reasonable: Whatever your goals for your expenses, debts, and earnings, make them monthly or quarterly so that you can check in regularly and see how you’re doing. Remember to make them reasonable, otherwise, you’re just setting yourself up for failure. When you see how you’re hitting your milestones, you’ll have a much better picture of where you are in the bigger picture as a business.
- Use bookkeeping software: There are many affordable and even free software programs out there that allow you to organise your book-keeping in one place. This allows you to see everything briefly, but also provides access to your Accountant, helping them to prepare your tax return easily and swiftly. We highly recommend that you look at Quickbooks as we have found it be one of the easier ones to navigate.
- Make tax season a plan all year round: Speaking of taxes, one of the most important things you can do is reduce ‘accounting stress’ by planning for that tax payment. Work with a budget, so that you know roughly where you should be focusing and how you are going to get there. This will ensure that there are no nasty surprises at the end of the year! Again, if you are following Profit First, you will be setting aside a small percentage each month to pay your taxes on time!
It’s all in the details
When you factor in these details, you’ll see how just ‘picking away’ at things on a regular basis can transform a huge job, normally undertaken at the very last minute, into smaller, doable tasks that don’t take long to do. It’s perfect for reducing the stress that end-of-year brings and means your accounting will be far more accurate.
When you want your new year to be as successful and as comfortable as possible, a key detail to focus on is planning your accounting as a year-long adventure rather than a mad hustle. This will make it the calmest year possible for your accounting process itself, and this will prove to be more important than you might think!
Wishing you a very happy, healthy, and profitable New Year.