Individuals and businesses alike always go into each new year with great intentions to do better in the coming months. When it comes to your business, this is the time to look at how you can improve your company’s financial health. It is the time to get advice from an accountant to help you plan a financially sound year ahead.
1. Start by Reviewing the Past Year’s Financials
The beginning of a new calendar year probably isn’t the beginning of a new fiscal year, but it never hurts to go through your ledgers to make sure everything balances. A balanced budget is a great way to start any new year.
2. Meet with Your Accountant
Ask your accountant to take a brief look at your financials to make sure everything is in order even though it isn’t time for filing just yet. It’s always better to be safe than sorry come filing time.
3. Review Growth and Goals
You can also take stock of the previous year at this time by looking at whether your business achieved the growth you expected. Did your business profit or are you losing money? This is the time to look at your expenditures to set new goals for growth and profit.
4. Make Sure You Are Current with Filings and Changes in Tax Laws
Nothing in life is static and so it is with government. Are you aware of any changes in filing requirements? Are you current with your business filings and do you understand how any changes could affect your company going forward?
5. Review Your Company’s Payroll
The beginning of a new year is always a good time to institute any changes in bookkeeping that will make life easier and more profitable for you. This is when you might entertain the notion of instituting electronic payroll payments and reviewing the status of your employees.
6. Bring Accounting Software Current
Tax laws change from year to year and so software can quickly become outdated. Do you have the most current accounting software and is it compliant with government regulations?
7. Review Business Accounts
By reviewing all your accounts, payable and receivable, you will be in a better position to make good decisions in both the short and long term. Software, financial planning tools and your accountant can help you with this.
8. Take a Survey of Clients
Why not review the previous year through the eyes of your clients? Since you are setting goals for the upcoming year, their input can be invaluable. You are looking to increase your bottom line and the best way to do this is to really listen to your clientele.
9. Work Toward Better Tracking of Finances
If you haven’t moved into the digital realm as yet, it’s time to do so. Digital copies can help you track your finances better and they sure are easier to access than mountains of paper files.
In the end, you are looking to improve your finances by working on fixing those goals you were unable to meet in the previous year. Working with your accountant, you can see where you went wrong and how to make improvements in the coming year. With all this in mind, it’s time to set those new resolutions for a prosperous new year.
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