Are you the type who makes New Year’s resolutions? Though most people who pledge self-improvement focus on losing weight or exercising more, deciding to brush up on your bookkeeping habits may actually be smarter—and easier to stick to. If you’ve ever found yourself shaking your head at your own process, the beginning of the year is the perfect time to correct inefficiencies and counter oversights. You don't need to change 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 for not going paperless is having 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 mailbox, and how easily you can access information with the ‘find’ function of your computer.
Where auto payment 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 important tasks.
Separate your business accounts from your personal accounts
Things are going to 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. 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.
Create a recurring monthly date for reviewing your bookkeeping and accounting numbers
Think about how many times you’ve found yourself confronted with some kind of 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 that is 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, this could be an opportunity to pay closer attention to your finances. If you know how much you’re making then you have a good idea of how much you’re going to owe. Set those funds aside now to avoid stress later.