2020 was a tough year for small business owners, and no amount of New Year’s resolutions at the end of 2019 could have prepared us for what was to come!
Hopefully 2021 will be better for all of us, and whilst there is still some uncertainty for small businesses in the coming months, there are some New Year’s resolutions that will help you to keep on top of your accounting for the next year and beyond.
Here are 5 New Year’s accounting resolutions for 2021…
1. Review your accounts regularly
To continue to run a successful business you need to know what’s going on. Set yourself the task of reviewing your accounts on a weekly basis to help you stay on top of your revenue and any expenses incurred. This way, not only do you know how much money you have going in and out every week, you can also quickly spot any problems and fix them before they snowball in bigger issues.
2. Manage your cashflow
As well as staying on top of the money going in and out of your business, another way to improve your cashflow is to spend some time looking into items you can lease rather than buy, cutting costs on expenditure, issuing invoices quickly, chasing late payments promptly, and sourcing cheaper suppliers.
3. Outsource your accounting
If you feel as though you spend a lot of time on your tax and VAT returns, you should consider hiring an accountant to do these for you. Not only will this save you a lot of time that could be better spent focusing on growing your business, an accountant can also help to ensure you don’t receive penalties from HMRC for any errors or late submissions.
4. Automate your processes
Automating various accounting processes can save you a lot of time and hassle, giving you more time to focus on the parts of your business that you love and need more attention. Automated processes such as apps to sync your expenses with your accounting software or to send regular payments, can stop the chances of missed payments.
5. Update your business plan
You should review and update your business plan at least once a year, and January is a great time to do it. Think about whether you are still on the right track and if you have the same goals as last year. Are there new opportunities that could fit in with your overall business plan?
What will be on your New Year’s resolutions list for your business in 2021? If there is anything Magpie Accountancy can help with, please feel free to get in touch.