The New Year is often a time for resolutions. For some it’s motivation to get in shape by eating healthier or working out more regularly. While you are setting goals, keep your company and its financial health in mind. Below are some resolutions for businesses in the New Year worth considering.
Make reviewing your books a weekly task in 2022 to better be aware of what’s going on within your company and manage cash flow more effectively. In addition to evaluating weekly revenue earned and expenses incurred, you will have the opportunity to discover and rectify adverse issues in a timely manner, should any arise.
When looking back on 2021, evaluate how growth, revenues and profits compare to the previous year. Did you list objectives, and did you meet those goals? If you haven’t seen improvement, analyze the figures in order to discover the reason.
Streamline your business operations and save you money by updating your payroll system. Are you offering electronic pay to save time and resources, in lieu of paper checks? It’s also important to check the status of all your workers and correctly classifying them as employees, independent contractors, or consultants. Ensuring classification is correct can avoid incurring a penalty from the government and your business losing money.
Unforeseen business costs are likely inevitable but preparing now rather than later can prevent you from financial upheaval if something goes wrong. Put away more in your emergency cash reserve when times are good, create multiple financial forecasts so that you know how to adjust accordingly in various scenarios and under budget rather than over.
Your business’s cash flow will take a hit if customer invoices remain unpaid beyond the due date. Be sure to ask several questions before reaching out to the customer:
Is the invoice correct, including the exact amount owed?
Was the invoice sent to the customer?
Has the invoice’s due date elapsed?
After ensuring the invoice is indeed overdue, consider sending a warm and polite email, asking if the customer received the invoice and that you are happy to resend if it cannot be located. Increase your chance of collecting the cash for the invoice and retaining the customer by approaching the situation in a firm but friendly manner.
Business owners often wear many hats, but it may seem overwhelming to manage your company’s accounting functions yourself. Increase both your business’s efficiency and performance by outsourcing your accounting functions. Decreased costs, access to the best accounting resources and talent, timely access to financial reports, saving time and having enhanced security are all ways you can benefit from utilizing the services of an accounting firm such as Anderson, Akins & Company. In addition, seeking professional tax planning advice will help ensure your business is complying with federal and state tax regulations. At Anderson, Adkins & Company, our certified public accountants stay informed about new tax laws and codes that may impact your business’s bottom line and can advise you about deductions and credits your company might qualify for.
Please contact our office today at 706-288-2000 to discuss your goals and resolutions for your businesses in the New Year and how you can benefit from the professional services of Anderson, Adkins & Company.