Small Business Bookkeeping Resolutions You Should Definitely Make (and keep)
I know, there’s still a whole month left of the year, but it will be New Year’s Day before you know it! If you want to do better with your bookkeeping, setting your intentions now is a step in the right direction.
Every big decision you make should be backed by your books. Clarity when it comes to your finances is always a good idea and with the right data at your fingertips, you’ll feel confident making bold moves and if all goes according to plan, more bread in the bank to grow that business of yours.
Streamline your bookkeeping
Take some time in December to adjust your current bookkeeping systems and streamline your process. If you’re DIY-ing your own books, it’s going to save you a heap of time throughout the year. Cloud-based systems, apps and programs make this so simple.
Get on Xero: if you’re still using spreadsheets, switching to Xero will save you endless hours. Once you’re set up, you’ll have seamless systems, accurate data and endless integrations at your fingertips.
Use HubDoc: Paper receipts are SO 2002. Use HubDoc and you can upload your receipts to Xero from your phone. Then, you can throw the clutter away because it will be stored in the cloud.
Keep your business & personal expenses separate! Not only will this save you time in the long run, but it will also reduce the likelihood of mistakes.
Commit to consistency
It’s all too easy to put your hands in the air and ignore your numbers when you’ve got competing priorities but it only causes headaches later on. Create your own bookkeeping routine and stick to it!
Having a solid grasp on your position with clean books at your disposal will serve you in 2023 and beyond.
Your routine should be customised to you and your business however, these are some common bookkeeping tasks to keep you on the ball:
Bank accounts: go through your business bank accounts at least weekly to capture errors, double payments, missing payments and so on.
Invoicing & accounts receivable: Set a routine for your invoicing and automate repeating invoices if applicable. Check off incoming funds as they hit your account. Ensure all amounts are correct.
Accounts payable: Forecast your expenses and set aside enough to cover your obligations. Again, set up automatic payments if applicable!
Reporting: Run a profit and loss report monthly to understand how your business is tracking. Once you’re across the basics, you can get fancy with COGs reports, projections and more!
Grow sustainably
We’re all in business to make money but what that looks like in your business is totally unique to you! Finding the sweet spot to sustain growth while enjoying your life is the ultimate win. How do you know if you’re building a sustainable business, though?
Ultimately, this is your call but if you are increasing your profit steadily and you’re increasing your work hours, this is a red flag that it’s time to outsource or hire.
If your business growth has stalled or your profit is declining, it’s time to investigate why! Are your expenses too high? Are you working less? Is it a short-term kink in the road or is it an ongoing trend?
Finding the right tempo for your business is critical to your success!
Making time for your bookkeeping is the first step in building a sustainable business. Once you have the figures, you’ve got the facts!
Here’s to a flourishing year ahead in business!
