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New Year Accounting Resolutions for Your Business

 

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For many of us, the end of a year wouldn’t be complete without making resolutions for the next one. Desperate to get in shape, scores of people vow to start eating healthier and exercising regularly. If you’re a fan of setting individual goals for the coming year, don’t forget about your business. Take the opportunity to examine your company’s financial health and look for ways to make improvements. If getting your business in tip-top shape is your priority, consider adhering to the following accounting resolutions for 2018.  

Review Your Books

To reap the benefits of business success, you need to be aware of what’s going on. To help you accomplish this important task, strive to review your books on a weekly basis in 2018. This practice helps business owners manage cash flow more effectively. Reviewing your books will help you monitor and evaluate weekly revenue earned and expenses incurred by your business. If an adverse issue arises, you’ll discover it, and have the opportunity to rectify it, in a timely manner.   

Seek Professional Tax Planning Advice

You’re responsible for ensuring your business taxes are filed properly. By seeking professional tax planning advice, you’ll feel confident your business is complying with federal and state tax regulations. A tax professional can advise you about deductions and credits your company might qualify for. This individual stays informed about new tax laws and codes that may impact your business’s bottom line.  

Review Growth, Revenue, and Sales Objectives

Take the time to reflect on 2017. Did your company grow or shrink? Ascertain how your revenues and profits in 2017 compared to 2016. Find out if your sales numbers are trending upwards or downwards. Was the amount of your expenditures troubling?

Did you make a list of objectives for 2017? If so, how effectively did you meet your goals? Reflecting on 2017 should help you determine how your company has changed during the past year. If your business hasn’t improved, analyze the figures in order to discover the reason.  

Update Your Payroll System

Updating your payroll system may both streamline your business operations and save you money. Paying employees electronically rather than with paper checks can save everyone time and valuable resources. During your payroll update, check the status of all of your workers. Classifying people correctly as employees, independent contractors, or consultants is vital. Misclassifying someone can cause you to both lose money and incur a penalty from the government.  

Collect Unpaid Customer Invoices Efficiently

When a customer’s invoice remains unpaid for a lengthy period of time, your business’s cash flow takes a hit. Before reaching out to a customer who owes you money, you need to collect some essential information. Decide if the invoice in question is correct. Are all the elements of a professional invoice present including the exact amount owed? Make sure you actually sent the invoice to the customer. Also, determine if the due date for the payment has already elapsed. After concluding that a customer’s invoice is indeed overdue, consider sending them a polite and friendly e-mail in order to give them a nudge. Ask your customer to check to see if they received the invoice. Graciously offer to resend it if they’ve lost it. By being nice, but firm, you’ll likely increase your odds of collecting the cash for the invoice and retaining the customer.

Plan for Significant Business Expenses

As a business owner, you might celebrate gaining a high profile client one day while witnessing the heating and air conditioning system at your business property blow up the next. During the course of 2018, unexpected business expenses are likely inevitable. Preparing for unforeseen costs now rather than later can prevent you from financial catastrophe when something goes wrong.

Outsource Accounting Functions

Does it ever feel like you never have enough hours in your days to get everything done. This may especially be the case if you’re trying to do all of your company’s accounting functions in-house. Outsourcing accounting tasks can increase both your business’s efficiency and performance by:

  • Decreasing costs
  • Giving you access to the best accounting talent and resources
  • Providing you with timely access to financial reports
  • Saving time
  • Enhancing security

The beginning of a new year is an exciting time. You get to wipe the slate clean while planning for next year’s successes. To make 2018 your best year yet, consider adhering to these tried and true accounting resolutions for your business. Let us know how we can help support your company throughout the year.

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