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

  • Jan 12
  • 3 min read

Updated: Feb 20

The holiday season is over, and it's time to dive back into work. The start of a new year is the perfect opportunity for small business owners to establish effective financial habits. Bookkeeping can often feel daunting, 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.


1. Review Last Year’s Financials


Before jumping into new goals and strategies, take a step back to review where your business stands. It might feel overwhelming at first, but it's 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. Tackling these will build momentum for larger changes.


2. Create a Budget


Most people need a way to see where their money is going each month. Budgeting helps you feel more in control of your finances and makes it easier to save for your goals. The trick is to find a way to track your finances that works for you.


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


3. Separate Personal and Business Finances


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 with integration, you may face challenges. Integration is necessary for connecting with your existing systems. It allows you to share data and information between platforms without hassle.


4. Automate Your Bookkeeping


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


If you’re unsure 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.


5. Stay on Top of Your Receivables


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


6. Plan Ahead for Tax Season


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.


7. Outsource Your Bookkeeping


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.


Reach Out for Help


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.


Get in Touch with Us for Our Services


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


  1. 5000 Birch St., West Tower,

Suite 3000 Newport Beach, CA 92660


Tel: +1 (909) 952-3804

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