7 Bookkeeping Resolutions for Small Businesses to Start the New Year Strong

The holiday season is over, and here we are ready to dive back into work. The start of a new year is the ideal opportunity for small business owners to establish more effective financial habits. Bookkeeping can often feel like a daunting task, but by creating resolutions and implementing efficient practices now, you can set your business up for success and reduce stress throughout the year.

Here are a few bookkeeping tips to get your books in order and keep them that way for the rest of the year.

Before you jump into new goals and strategies, take a step back and review where your business stands. It might feel overwhelming at first, but worth it.

• Look at Your Cash Flow: Where did your money come from, and where did it go?

• Are my customers paying on time, or do I need better follow-up?

• Am I spending too much on certain expenses? Could I find cheaper options?

• Am I growing? Compare this year’s income and expenses to last year’s.

Once you’ve answered these questions, write down two or three things you’d like to improve this year. Once you tackle those, you’ll build momentum for larger changes.

Most people need some way of seeing where their money is going each month. Budgeting can help you feel more in control of your finances and make it easier to save money for your goals. The trick is to figure out a way to track your finances that works for you.

In creating the budget, you determine how you plan to acquire and use your resources to meet the business objectives. Once in place, it becomes a valuable benchmark to track how well the steps taken by management are ensuring objectives are attained.

Mixing personal and business finances is a common mistake for small business owners. Make it a resolution to keep these accounts separate by using a dedicated business bank account and credit card. This not only simplifies bookkeeping but also ensures compliance with tax regulations. If you’re not using accounting software that has integration, then you’re going to have a hard time. Integration is necessary for connecting with your existing systems. It allows you to share data and information between the platforms without any hassle.

Automated bookkeeping is a crucial solution to adopt when organizations are aiming for maximum efficiency. Automation tools can make life so much easier. Automate tasks like categorizing expenses or sending invoices. There are tons of tools out there, and you don’t need to be a tech expert to use them.

If you’re not sure where to start, pick one task to automate, like tracking mileage or reminding clients about late payments. Once you see how much time it saves, you’ll wonder why you didn’t do it sooner.

The longer a customer takes to settle an invoice, the harder the impact on your cash flow. Develop an efficient system to track overdue invoices. Send a polite and friendly e-mail 1-3 days after sending the invoice to confirm receipt. Follow up with a reminder 2 to 3 days prior to and after the due date. You’ll likely increase your odds of collecting the cash and retaining the customer.

Avoid the last-minute scramble by staying proactive with tax preparation. Keep all relevant documents organized, track deductible expenses, and consider working with a bookkeeper or tax professional to ensure you’re ready for filing deadlines.

If bookkeeping takes up too much of your time or feels overwhelming, consider outsourcing to professionals like Cloud Bookkeeping, Inc. Having experts handle your books allows you to focus on growing your business while ensuring financial accuracy.

Everyone deserves a supportive team of people who care. Cloud Bookkeeping Inc.’s team provides monthly bookkeeping and accurate financial reports. We’ll give you financial visibility throughout the year and deliver insights to make strategic business decisions

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We don’t just say it, we deliver – our work speaks for us! Contact us for 30 minutes of free consultation and opt for our Online Bookkeeping Service.

Cloud Bookkeeping, Inc.

(Our Office Addresses)

1. 3281 E. Guasti Road, Suite 700

Ontario California 9176

2. 5000 Birch St., West Tower,

Suite 3000 Newport Beach, CA 92660

Tel: +1 (909) 952-3804

Website: www.cloudbookkeepinginc.com