New Year Accounting and Business Resolutions
As the new year approaches, leaving behind the unprecedented and challenging year that was 2020, many of us will be making new goals and resolutions. The new year never fails to bring about a fresh optimism and the opportunity to start anew, reset and progress forward with new goals.
Dec 24, 2020
As the new year approaches, leaving behind the unprecedented and challenging year that was 2020, many of us will be making new goals and resolutions. The new year never fails to bring about a fresh optimism and the opportunity to start anew, reset and progress forward with new goals. The new year’s resolutions we set often aim to improve our health and wellbeing, finances and career or business. While accounting isn’t the first thing most people want to think about in the new year, given the significant financial challenges most individuals and business owners have had to contend with due to COVID, it is the perfect opportunity to set your accounting resolutions for 2021. Even though COVID isn’t going away in the new year, and financial challenges may still lay ahead in 2021, now is the perfect time to examine your business’s financial health, and to set resolutions to get your business back into shape and thriving. If this is a priority for you in 2021, we have made your life easier by outlining our top 5 accounting resolutions you could consider for 2021.
Review your Finances
In order to achieve your business goals, manage cash flow and grow your company, you need to be across the financial details of your business, meaning you need to review your books and records. You may be surprised by what you find. Some of the clients we work with are often shocked with how their business funds are being spent, or they are constantly wondering why they have no cash flow. If you’re not across your books, chances are you often find yourself stuck financially. By proactively reviewing your finances, you will be able to set realistic projections, identify issues before they become issues, and keep on top of your cash flow. This is paramount to the financial health and success of your business.
Collect, Collect, Collect!
If you plan on keeping your business afloat into the new year (and we’re assuming the answer is yes), then you need to make sure you’re collecting on overdue invoices. If invoices are unpaid past their due date, your business’s cash flow will take a hit. While you’re chasing up unpaid invoices, take the time to make sure all the legal elements of a properly rendered invoice is included in your invoices. For many, collections can be an uncomfortable, but necessary, part of running a business, however it doesn’t have to be. Different ways to approach collections includes a simple nudge reminding the customer of the due date, to entering into payment arrangements with a struggling customer. Be kind, but firm, and you’ll likely increase your success with not only collecting your hard earned cash, but also retaining your customer.
Set Ambitious Revenue, Growth and Sales Goals
This goes without saying. If you dont set aspirational, ambitious goals, you’ll settle for mediocre results. Challenege yourself and your business this year and you may surprise yourself with the results. Setting ambitious goals can also force you to be innovative and find new and better ways to provide your goods and services. If 2020 was anything to go by, innovation is a must in this new decade.
Automate or Outsource Manual Processes
Speaking of innovation, it’s 2021, what are you doing with a paper and pen in your hand?!
All jokes aside, the new year is the perfect time to find opportunities to automate or outsource business processes that are taking up your time. Some examples of common areas to automate and outsource include payroll, bookkeeping, marketing and accounting. Have a look at where you or your employees are spending the most time, and compare the time to value the task is bringing to your business. If it’s not bringing significant value, chances are you should look at alternative ways of completing that task to free up more time for value-adding tasks.
Get Professional Tax Planning Advice
For the unprepared, taxes can be hard-hitting. We have seen clients time and time again not prepared for the tax bill during tax time. Luckily, they have had us on their side to minimise their tax by finding deductions and credits that the business owner would have otherwise missed. It is also important to stay on top of tax laws and codes that may impact your business’s bottom line, and if 2020 was anything to go by, regulations can change on a weekly basis. Having the right tax accountants on your team can give you the confidence you need to ensure that you are prepared to comply with tax requirements, and to make sure you are applying your finances in a tax effective way.