The COVID-19 pandemic has thrown most businesses through a loop.
For a while, it looked like we may never get back to normal, and now that “normalcy” seems around the corner, we’ve run into a host of new problems. They range from labor shortages to supply chain issues to what’s become known as a “hybrid workforce,” where formerly remote employees are now splitting time between the office and home.
With all these challenges that seem to continue growing, the last thing you should worry about as a business owner is your accounting. Now is the perfect time to resolve to hire a professional accounting firm to take care of the details you don’t have enough hours in the day to tackle.
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Contact Larry L. Bertsch, CPA & Associates, LLP today!
Why You Should Have End-Of-Year Resolutions
A year-end resolution isn’t just about drinking less, eating fewer sweets, or being nicer to people. It’s also a valuable tool with which to point your business in the right direction and achieve better results. The three keys to a successful end-of-year resolution are to decide exactly what you want to achieve, make a plan to reach it, and set realistic goals that act as steps to guide you.
To determine what you hope to achieve, form specifics around what success means to your business. Keep in mind that vague resolutions won’t produce the powerful results you seek, so ask yourself a few questions to make sure this first part is on the mark:
- What are my strengths and what should I spend more time working on?
- What are achievable opportunities for my business and me?
- Will I need any additional training to enhance my skills?
- What does success look like in the coming year?
Now that you’ve laid out the first part of your plan with clear and concise measurables, it’s time to determine your path to get there. To help develop action items that move you forward, here are a few tips:
- Are there events I can attend that will enhance my knowledge and visibility?
- What projects or volunteer opportunities can I lead?
- How do I get the skills I’ll need to improve?
Finally, once you’ve answered these and any other questions you come up with, it’s time to identify achievable goals. The best way to pull all this together is thinking of SMART (specific, measurable, achievable, relevant, and time-based) goals. These need to be very specific, so something like “I will bring in new business this month” won’t cut it. Try a few of these tips:
- I will achieve 15 percent growth in three months through my “X” initiative
- I will engage 20 potential customers online in the month of March
- I will finish the website updates I’ve been putting off in two weeks
- I will volunteer at the next community cleanup and pass out 10 business cards
Make sure you align each of these goals to your overall resolution and determine how exactly they will help you get there. You’ll enjoy watching your goals move closer to achievements to effectively track your progress, and it’s fine to continuously adjust your plans and goals for a better outcome.
8 End-of-the-Year Accounting Resolutions
Now let’s take a closer look at eight end-of-year accounting resolutions you can make now that will produce tangible results in the new year.
Hire a Professional CPA Firm
Hiring a professional CPA in Las Vegas for your accounting services is a great idea because it eliminates many common bookkeeping errors and small businesses often don’t have the resources to bring on one in-house. Even if you have a tax preparation service, it’s still an excellent idea to bring on a professional firm like LLB CPA to set up regular meetings to review year-end numbers and develop a plan to achieve your goals.
Update Accounting Software
If you’re using accounting software to help you with bookkeeping services, make sure to keep it up-to-date. Tax laws and other changes can lead to big problems later if you don’t keep your software updated. And if you’re in the market for a new accounting system to make your life easier, make sure it integrates well with your business management system, eliminates redundant efforts, prevents common errors, and automates mundane tasks, such as tracking and following up on outstanding invoices.
Keep The Books Up-to-Date Every Week
You don’t want to wait too long to understand what’s happening with your small business bookkeeping, so don’t put it off until the end of the month. As time goes by, it’s easy to forget what happened days or weeks ago, so avoid these common mistakes by making a plan to update your books every week. But it’s not enough just to plan it… you have to stick to it!
Learn Next Year’s Tax Changes
As the saying goes, the only thing that’s certain in life is death and taxes, but even taxes change every year at the federal, state, and county levels. Tax codes and regulations are constantly fluid, so meet with your tax professional to get a closer look at next year’s changes and how those may affect your business.
Review Year-End Financials to Adjust Next Year’s Budget
It’s always a good idea to review your financials at the end of the year to be sure they all add up and that your organization remains in solid financial standing. It’s even better if you do this every month or every quarter. You don’t want to fly blind into the new year not knowing exactly what next year’s budget looks like.
Polish Your Payroll System
Even if you have a few employees, you know that payroll entries can be a complex mess. In addition to the expense to you, you must calculate payroll tax withholdings for you and any employees and then add in things like reimbursements, advances, and garnishments. Review your payroll system each year and determine if it’s still working for you, and if it isn’t, then take some time to review alternatives.
Separate Business And Personal Finances
If you haven’t done so already, it’s very important to separate your business and personal finances. Do you sometimes interchange your business and personal credit cards? This is a common mistake small business owners make that causes difficultly when tracking business profit and loss and makes tax preparation tough. Don’t sacrifice short-term ease for a long-term problem. Keep those finances separate.
Audit Your Inventory
Audits are necessary to maintain an accurate record of your inventory, determine any shrinkage, and know that you’ll always have the correct amount of stock when you need it. Knowing your stock flow will ensure that your operation is always running smoothly. If you haven’t conducted an inventory audit in a while, the new year is the perfect time to get on it.
Improve Your Company’s Financial Health With Our Accounting And Bookkeeping Services
If accounting was easy, everybody would do it. The easiest resolution you can make is to let a professional CPA take care of the hassles for you so you can focus on building and running your business. Take a look at our website or give us a call to see what we can do to help your business succeed in the new year!