The start of a new year is a good time to make resolutions. You might decide to improve your health with a new diet and exercise routine, but don’t forget about the health of your business.
It’s well worth investing some time into evaluating your company’s financial health and identifying areas which can be improved. Work out your accounting goals for the new year and write them down as resolutions that can guide you to greater success.
These are our top accounting resolutions for the new year:
Review your books
To succeed in business, you need to keep track of what’s going on with your finances. Commit to a routine of reviewing your books on a weekly basis. You’ll find this helps you manage your cash flow more effectively. Not only will you feel on top of everything, you’ll learn more about your finances and have a clearer picture of how to take your business to the next level. And if an issue arises, you can spot it well in advance with plenty of time to take corrective action.
Talk to an accountant
You are responsible for filing your business taxes properly and on time. By seeking the professional advice of a qualified accountant, you can ensure that you’re up-to-date with the latest changes in tax laws and regulations, and that you understand how these changes affect your business. An accountant can also advise you on your key financial deadlines to ensure you don’t get fined for late filings.
Review growth, revenue and sales objectives
Take some time to reflect on your performance for the past year. Did your business grow or shrink? Are your revenues and profits healthy? Take a look at your sales graphs – are they trending upwards or downwards? By doing this, you can identify what you’re doing right so you can continue doing it. Just as importantly, you can identify where you’re going wrong and get back on the right track.
Update your payroll
Updating your payroll system is a surefire way to save you time and money. If you haven’t already done so, making the switch to paying employees electronically will improve your business efficiency. While you’re updating your payroll, take the opportunity to review the status of each of your workers and make sure they’re correctly classified as employees, contractors or consultants. Misclassifying someone can cost you money and incur a penalty from the government.
Update your accounting software
During busy periods, you’ve no time to take a step back and evaluate your accounting software. Now you’re in a quieter period of the year, take the opportunity to consider if your software is meeting your needs. If you’re still stuck on traditional desktop accounting software or even Excel spreadsheets, consider the benefits of moving to online accounting. With online accounting you can access your accounts from anywhere, at any time, with any device.
Outsource accounting tasks
Staying on top of your accounting while running a business at the same time can be a constant struggle. It can be stressful and not very efficient to try and do all your accounting in-house. Outsourcing your accounting tasks can give you access to the best accounting talent and resources and leave you to focus on what you do best – running your business.
Like some more advice on how to supercharge your accounting for the new year? Why not give our chartered accountants at Hammonds Accountants a call on 020 8249 6328 or drop us a line at . We’re here to support you and provide help and guidance that goes beyond the spreadsheet.