Now’s the Time to Brush Up on Your Bookkeeping Habits
Are you the type who makes New Year’s resolutions? Though the vast majority of those who pledge self-improvement focus on losing weight or exercising more, deciding to brush up on your bookkeeping habits may actually be more thoughtful – and easier to stick to.
If you’ve ever found yourself shaking your head at your process, the beginning of the year is the perfect time to correct inefficiencies and counter oversights. There’s no reason to overhaul everything; just making changes for how you go about things in the future will make a significant difference.
Here are some of our top tips for small steps that will go a long way towards improving your operations in 2022:
Get away from hard copies.
One of the top reasons people give for not going paperless is that they have too many paper records to convert. The truth is that you can keep your paper files and still switch over to digital. All you have to do is check the box to convert to paperless as you log on to each of your accounts. You’ll be amazed at how much lighter you feel without account statements filling your snail mail mailbox and how easily you can access information with the ‘find’ function of your computer.
Where autopayment is available, activate it.
Why should you go through the process of tracking and paying monthly bills manually? As long as you have plenty of cash in your payment account, you can set yourself up with autopay and move on to more critical tasks.
Separate your business accounts from your personal accounts.
This is one of the top pieces of advice for every business owner, and if you haven’t done it previously, then now is the time. Things will get even more complicated with the changes in tax law that take effect in 2022, so make it easier on yourself by setting up separate accounts.
Create a recurring monthly date for reviewing your bookkeeping and accounting numbers.
Think about how many times you’ve found yourself confronted with some bookkeeping emergency or question that has stopped you in your tracks and sent you scrambling for answers. If you set a date with yourself once a month specifically for reviewing your financial issues, you’ll avoid the sense of urgency and enter the discussion prepared.
Anticipate and prepare for your tax needs.
If you find yourself worrying about how you’re going to pay your tax bill each year, it means that you’re not paying attention. If you know how much you’re making, you have a good idea of how much you’re going to owe, and you should be setting those funds aside now so that you’re not stressed later.
If a fresh start sounds good, but you need help, we’re here for you. Give us a call to learn how our comprehensive bookkeeping and accounting services can make your life easier.