5 Accounting Resolutions Small Businesses Should Have in the New Year
A new year means new resolutions to live a healthier life. For example, many people resolve to change their diet, exercise more, or cut down on other vices. You can make the same sort of resolutions for your small business to help it stay in shape for 2020. Since money is important, its necessary to review your overall financial health to see where improvements can be made.
Your New Year Accounting Resolutions
Here are five tips that will help you understand what you accomplished in 2019 and what is possible for 2020 and beyond. Some will require action now, while others can help you grow your business in the new year.
Review your financials
Review growth, revenue, and sales objectives
Update Payroll
Keep your accounts in mind
Efficiently track your expenses
Review Your Financials
A new year calls for a financial review. Go through your sales receipts and invoices now, and check your bank accounts to make sure your figures add up. Your accounting software makes this easy and does most of the work for you. Follow up with your outsourced accounting team with any questions you might have for 2020 growth.
Review Growth, Revenue, and Sales Objectives
Take some time to reflect on what your company did in 2019. Did your company grow, or did it shrink? Review how your revenue is trending compared over the past couple of years - is there something you could be doing differently?
Review your objections from 2019, did you meet them? Reflecting on 2019 should help you determine how your business has changed, and if it hasn't improved, analyze the figures to discover the reason.
Update Your Payroll
Updating your payroll system can streamline your business operations and help save you money. Paying your employees with direct deposit rather than paper checks can save everyone valuable time and resources. During the update, check the status of all your employees. Make sure you are classifying people correctly - i.e., employees, independent contractors, or consultants. Misclassifying something can cause you to lose money and potentially incur a penalty from the government.
Keep Your Accounts in Mind
Well-managed accounts are a reflection of a well-run business. With the right financial tools, you'll be aware of your company's financial well-being at any time. This knowledge will help you make the right decisions for both the short and long game.
Efficiently Track Your Finances
Learn from 2019 and figure out what you can do to track your finances more efficiently in 2020. How are you keeping your receipts? Consider keeping digital copies and upload to your accounting software. Keep all business transactions on a business credit card, and don't mix business and personal - this can complicate matters when you go to reconcile your finances.
Finally, keep track of money coming in (customer payments) and money going out (your costs.) For many small businesses, staffing can be one of the highest prices you face. Examine employment costs and the output of your employees carefully, and make any necessary changes to help save money.
New year. New Goals.
The start of a new year is an exciting time for any business. You get to clear the slate while planning for new successes. To make 2020 your best year yet, consider adhering to these accounting resolutions for your business. Feel free to reach out and let us know how we can help support your business throughout the year.
