Not as on top of your business as you would like? Get rid of bad bookkeeping habits and start some new, good ones. Check out our suggestions for being more efficient and profitable in the years ahead.
Update the books once a week.
There’s a saying for managing workload: “Do a little and do it often.” Keep the accounting tasks small and easy by doing them at frequent intervals. Waiting until the end of the month piles up a daunting amount of work, which means you’ll be tempted to put if off yet another month. Plus, you’re more likely to forget what happened 3 weeks ago than 3 days ago, which causes more mistakes.
Find financial software that really works for my business.
Does your accounting system make your work life easier, is it a struggle to use? The ideal system should integrate easily with your business management system, eliminate duplication of effort, prevent errors, and automate routine tasks such as following up on outstanding invoices.
I will keep business and personal bank accounts separate.
Do you find yourself using the business credit card for personal purchases, or the personal card for business ones? This bad habit makes it extremely difficult to track business profits and losses, not to mention turning your tax prep into an absolute nightmare. The long-term hassles are far worse than the short-term convenience. A better way to take money out of the business is as a bank transfer of salary.
Make a business budget.
Now that you have complete, updated financial records (see resolution #1 above), you can create a budget based on reality, rather than guesses. You’ll know exactly how much you need to spend on supplies, payroll, overhead and other costs of doing business; and how much money you need to bring in to make a profit.
I will compare the budget to the actual numbers every month.
No matter how accurate your budget was when you made it, conditions are constantly changing. The only way to know how your business is really doing is to compare actual income and expenses against what the budget projected them to be. Now you can make the right corrections and nip problems in the bud.
Outsource my bookkeeping.
This is absolutely the easiest resolution to keep — just let someone else handle the hassles! Xendoo’s cloud-based, real time accounting system is fast, comprehensive and affordable. Best of all, it lets you devote your time and energy to the aspects of your business you really love. Here’s a toast to your thriving business in 2020 and beyond!