For many businesses, the end of the year wouldn’t be complete without making accounting resolutions for the next one.
This New Year, take the opportunity to assess your company’s financial health and find ways to make it better.
If improving your business’s financial situation is a top priority, consider following these accounting resolutions for 2024.
Review Your Financial Records
To truly enjoy the rewards of business success, it’s crucial to stay informed about your company’s financial status. To achieve this, make it a goal to regularly go over your financial records throughout 2024. This habit is instrumental for business owners to better handle cash flow. Going through your financial records allows you to keep a close eye on your weekly earnings and expenditures. If any unfavourable situations arise, you’ll catch them early and have the chance to address them.
Consult with a Tax Planning Expert
As the owner, it’s your duty to ensure that your business taxes are handled correctly. Seeking guidance from a professional tax planner can provide you with the assurance that your business follows both federal and state tax laws.
A tax expert can offer valuable insights into potential deductions and credits that your company may be eligible for. They stay up to date with the latest tax laws and codes that could affect your business’s financial standing.
Assess Your Growth, Revenue, and Sales Goals
Let’s take a moment to look back at 2023. Did your company experience growth or contraction? Examine how your revenue and profits in 2023 compared to the figures from 2022.
Identify whether your sales numbers have been on an upward or downward trajectory. Were your expenses a cause for concern?
Did you establish a set of objectives for 2024? If so, how effectively were you able to achieve these goals? Looking back on the past year should provide insights into how your company has evolved.
If your business hasn’t seen improvement, delve into the numbers to uncover the underlying reasons.
Revamp Your Payroll System
Modernising your payroll system offers the dual advantage of streamlining your business operations and cutting costs. Transitioning to electronic employee payments, instead of traditional paper checks, can save time and valuable resources for all parties involved.
While you’re updating your payroll system, be sure to review the employment status of all your workers. Accurate classification as employees, independent contractors, or consultants is of utmost importance.
Misclassifying an employee can result in financial losses and potential penalties from the government.
Manage Unpaid Customer Invoices
When an invoice from a customer goes unpaid for an extended period, it can negatively impact your business’s cash flow. Before reaching out to customers with outstanding invoices, there are some key steps to follow.
First, verify the accuracy of the invoice in question. Double-check that it contains all the necessary details of a professional invoice, including the precise amount owed. Double-check that you’ve indeed sent the invoice to the customer and confirm whether the payment due date has passed.
Once you’ve determined that a customer’s invoice is overdue, consider sending a polite and friendly email as a gentle reminder. Politely ask the customer to confirm whether they’ve received the invoice and offer to resend it if it got misplaced. By maintaining a courteous yet assertive approach, you can enhance your chances of successfully collecting the outstanding payment while preserving the customer relationship.
Consider Outsourcing Your Accounting Needs
Have you ever felt like there simply aren’t enough hours in the day to tackle everything on your to-do list? This can be particularly true when you’re handling all your company’s accounting tasks in-house. Outsourcing accounting functions can significantly boost your business’s efficiency and performance by:
- Reducing Costs
- Providing access to top-tier accounting talent and resources
- Ensuring timely access to financial reports
- Saving precious time
- Enhancing security
The start of a new year is always an exciting time. It’s an opportunity to reset and plan for the upcoming year’s achievements.
To ensure that 2024 is your most successful year yet, consider adopting these proven accounting resolutions for your business.
If you need a dedicated accountant for your business needs, consider reaching out to us at ARN Hoxton.
At ARN Hoxton, going the extra mile is our standard practice. We don’t just track your business’s performance; we work closely with you to identify strategic and creative solutions to ensure you meet your targets.
Think of us as an integral part of your management team, so get in touch with us today, and let’s work together to make 2024 the best financial and accounting year for your business.