New Year Accounting Resolutions for your business

• Business Planning
• Managing a Business

The New Year is the perfect time to reflect on your business over the past 12 months and begin preparing for the next.

Afterall, many of us make a personal resolution at the start of each year, why not make the same for your business?

It proves to be a good opportunity to review your business’s “financial health” and look forward to ways of making improvements in the new year.

Here are our top three New Year’s Resolutions to consider for your business in 2022:

1. I will take an interest in the numbers

When your accountant begins talking numbers it can easily be the time to tune out and think about almost everything else but the credits and debits of your business.

However, understanding the nitty gritty of the numbers can expose important trends, comparisons, and abnormalities in your company financials.

They are the key to long term strategic decisions, tenancy agreements, staffing solutions and stock or equipment purchasing.

Waiting until the end of each financial year to review the business numbers could potentially be jeopardising the decision-making process in the short term.

In 2022, make a resolution to review your business numbers on a monthly basis – with your accountant if required.

This way your books are kept up to date, and your understanding of where the numbers sit puts you one step ahead in making business decisions.

2. I will work ‘on’ my business, not just ‘in’ my business

It is common to hear business owners working hard in their business to ensure daily tasks are completed.

Usually, it is because owners are so good at the “job” – working in their industry for many years it can be hard for owners to step back from the practicality of earning the money.

Rather, set a goal in 2022 to take a step out of your business to work on it in other ways.

Develop strategies to grow your business and join a new organisation or networking group – find like-minded owners to bounce ideas off and broaden your promotional networks.

Write down business goals and track them and prepare a detailed budget that includes opportunity for growth and succession.

Make business planning a weekly event in your calendar – having strategies in place for sudden changes means stronger adaptability in an ever-changing business landscape.

Advance your management skills and grow your business mindset with a new course or study option – all that will allow you to work “on” your company in 2022.

See a list of workshops from the WA Small Business Development Corporation HERE.

3. I will get my accounting software up to date

It can be hard to find the time to take a step back and evaluate your accounting software when the year is busy, so take advantage of the quieter period and review how your systems are working for you.

If you are using traditional methods of desktop accounting software or Excel spreadsheets it may be time to consider upgrading to a cloud-based system?

Your accounts can be accessed from anywhere, anytime, and your accountant has access to live data ensuring the numbers are always up to date.

Also, consider moving your paper-based filing system to an electronic filing system.

This allows for smooth operations between yourself and your bookkeeper, increasing efficiency and decreasing the chance of the paper trail getting lost throughout the year.

Find out more

Interested in discussing your 2022 business resolutions? Or interested in finding out how to improve your business’ financial health for the new year? Book your obligation free chat with our expert team HERE.

Learn more about Cloud-Based Accounting HERE.