For many of us, the new year is a perfect opportunity for your company to examine its 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 5 New Year’s Accounting Resolutions.
1. Review Your Books
It is absolutely essential a business owner is aware of what is going on in their business. To reap the benefits of business success, a small business should strive to review their books on a weekly basis in 2022. Accurate small business bookkeeping helps manage cash flow more effectively and will help you evaluate your weekly revenue earned and expenses incurred. If an adverse issue arises, tracking your bookkeeping records regularly will allow you to discover it in a timely manner with the opportunity to rectify it before damage is done. Money matters to your small business, and it makes good sense to look at and review your books to see where you can make improvements.
If you are like most entrepreneurs and feel too busy, bookkeeping services for small business may be an excellent way to save time and money while reaping the benefits of the high-quality knowledge of your bookkeeper. Small business bookkeeping services ensure 100% accuracy in their work since that is what their reputation relies on. Good bookkeeping services will act as proactive accountants and give the business owner advice or alert them when red flags arise.
2. Seek Professional Tax Planning Advice
While running a small business, every penny counts. Your small business may have the ability to minimize taxes which could be the difference between profitability and just scraping by. No business wants to pay more than they owe, and hiring a professional is the perfect way to ensure your business taxes are filed properly. Also, by seeking professional advice, you will feel confident your business is complying with state and federal tax regulations with no errors. Staying informed about new tax laws and codes may impact your business’s bottom line.
Spending the extra coin to hire a professional may be well worth it. Limitless Investment and Capital’s tax preparation and assistance experts have up to date knowledge on the constantly changing deductions and credit changes. Our tax assistance has the ability to maximize your deductions and minimize any human error associated with filing your taxes.
3. Outsource Accounting Functions
It does not take long for a new business owner to understand that accurate and up-to-date financial records play an important role in the success of a small business. The daily tasks required to maintain accounting records often falls to the bottom of the to-do list of priorities not to mention it takes them a much longer time to accomplish than an experienced accounting professional. If you feel like you do not have enough hours in your day to get everything done, it is time to consider outsourcing your accounting. Outsourcing accounting services can increase both your business’s efficiency and performance by
- saving time
- providing you with timely access to financial reports
- cut down costs
- reduce overhead
- giving your access to the best accounting talent and resources
- reduce fraud
- scalable options
4. Review of growth, revenue, and sales
It is important to try and understand how your business has changed from the previous year. Reflecting on the following questions can help you understand how your business may or may not have changed in the last year:
- Did your company grow or shrink?
- How did your revenues and profits compare with the previous year?
- Are your sales trending upward?
- Does your expenditure over the past 12 months give any cause for concern?
- Did you achieve your list of objectives for the year?
If your business has not improved, you may need to do some more digging to find out why. Now may be the perfect time to get professional advice from a local CPA or accountant who can help with the coming years financial planning and get your small business on the right track to success.
5. Update your Payroll System
Updating your internal systems can be important to streamline your business operations, especially your payroll system. With the right software, this should be fairly easy to do. Here are some things your small business should consider
- Pay employees electronically- paying your employees by direct deposits can save everyone time, money, and resources. Not to mention it is extremely convenient for employees who no longer have to worry about depositing or cashing their checks.
- Reviewing employee status- Classifying people correctly as employees, consultants, or independent contractors is essential. Misclassifying someone can cause you both to lose money and if you get it wrong you may be penalized by the government.
- Handing out bonuses- With an updated payroll system, you may have the ability to pay bonuses anytime instead of waiting till the end of the tax year. We advise you to check your local legislation, but it may help your tax accounting to do it sooner rather than later.
Limitless Investment and Capital Remote Bookkeeping and Remote Accounting Services
Our remote bookkeepers and remote accounting experts can help your small business get in tip-top shape in 2022! Sound financial management is essential to making great business decisions, and our experts have the resources and knowledge to help get your finances healthy in no time. Schedule a FREE financial analysis today!