The good thing about the new year is that whatever happened in the previous year has the opportunity to be improved upon. In business, New Year’s is a great time to reflect on successes, failures and ways to set the coming year off on a better foot. One of the most frequent resolutions made by small business owners is to increase profits. What is often overlooked is the ‘how’ of making more money.
Here’s a few resolutions that will help start off 2015 with your business goals in mind and actionable steps toward achieving them.
Keep better track of the company’s financials. If you kept an envelope of receipts last year, this year move to an online receipt tracking service like Shoeboxed. If last year’s profit and loss statements are cobbled together from your paper receipts, checking account deposits and credit card swipes, this year resolve to implement and consistently use a small business accounting program like Quicken or Quickbooks. Allowing your cash to flow in and out of the company with little or no recordkeeping system can lead to total catastrophe in short time. Businesses need structural support to thrive. Give yourself the gift of financial stability by writing down your financial goals and the steps necessary to implement them. If you’re struggling or overwhelmed by the mere prospect of loading the software, seek support through an experienced accountant, bookkeeper or even your local small business incubator.
Pay your business taxes – on time. Procrastination, especially when it comes to Uncle Sam and the IRS, can be expensive and demanding. Rather than file extension after extension, Quickbooks, the financial organization software mentioned above, can be your new best friend. Reports can be easily created that show income, expenses, investments and even payroll. If you’re behind on your taxes, now is the time to take control of your situation and stop letting it overwhelm you. Calling a business accounting or tax professional can put an immediate halt to any tax actions while they work out a plan.
Maintain good credit. With the first two items checked off your list, now it’s time to look at your company’s creditworthiness. Business growth often relies heavily on its borrowing power. Bad credit translates into high interest rates and challenging terms if loans are available at all. Good credit can mean better opportunities for borrowing, negotiating better terms with creditors, increased lines of credit and improved cash flow for greater growth.
Seek guidance whenever possible. Being a small business owner is synonymous with being a jack of all trades, but that doesn’t mean that you should truly be an expert in all areas of the business. Resources such business attorneys, financial advisors, accountants, tax advisors, marketing consultants and industry-specific experts can provide insight, and guidance to help you reach your goals.
PASBA member accountants bring the collective resources of a nationwide network of Certified Public Accountants, Public Accountants, Enrolled Agents and other practitioners available to answer your tax and financial questions and streamline your business accounting, bookkeeping, and payroll operations.
To find a trusted accountant in your area, visit www.SmallBizAccountants.com.
Please be advised that, based on current IRS rules and standards, any advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty that the IRS may assess related to this matter. Any information contained in this article, whether viewed or subsequently printed, cannot be relied upon as qualified tax and accounting advice. Any information contained in this article does not fall under the guidelines of IRS Circular 230.