Business Accounting Tips for the New Year

By Qmulus Team
January 15, 2020

The beginning of the calendar is a natural time for many to consider the goals they have for the next 12 months. It seems like everyone is setting fitness goals or vowing to take on new hobbies. While you reflect on the ways you may better your personal health, also consider what steps you can take to help your business’s fiscal health. We have a few tips to get your business accounting ready for the new year.

At the end of 2019, you looked over how your business performed and (hopefully!) tied up all loose ends. While you may not be able to predict environmental factors and how they’ll impact your business, there are things you can control and prepare for. Now is the perfect time to take stock of your business goals for 2020 and evaluate your financial management.  

Here are four business accounting tips on how you can pave the way to another successful year:

Trim expenses

For many SMEs, especially those in the retail industry, the holiday season is when  most sales are made…and when operations costs bloat. From hiring extra hands to increase inventory, December was likely a time of high costs. As you move into the new year, consider trimming down on expenses. Review your processes and identify areas where you can find efficiencies. This can look like cutting down on labour costs or negotiating with vendors for better rates. 

Having trouble cutting costs? Technology is your friend! Certain accounting firms, like Qmulus, will have technology solutions that can give you back your time and help you save in terms of manpower and hours.

Digitize processes

As we just mentioned, leveraging technology can be a great way to optimize your business. At Qmulus, we use cloud-based technology software to allow you access to your data anywhere you go. As a business owner constantly on the go, hopping from meetings to meetings, you need constant and easy access to your work. Ever walk out of a strategy meeting wishing you could have pulled up your financial data to refer to or spend countless hours trying to find that one invoice? Those days are over once you move your work onto the cloud. 

Programs such as Quickbooks allow you to work faster and smarter without compromising on security. Our solutions use bank-level encryption to secure your accounts and have a two-step authentication process. From payroll systems such as Wagepoint to financial document management software like Hubdoc, we offer training and setup of technology solutions that can help you make this your most efficient year yet.

Tax plan

Like it or not, tax season will be here before you know it. You don’t want to be caught scrambling at the last minute. Instead, take note of any tax changes that have happened since you last filed tax returns and consider deductions and credits your business may qualify for. Your tax professional can speak to any new tax laws or codes that could impact your company and advise you on all tax matters. Even the simple step of marking down and setting alerts for filing deadlines can help you move smoothly in the year. 

Ask questions about last year’s growth, revenue, and sales

Take the time to sit down and really think about the following questions:

  • Did you experience business growth? If so, what can you attribute it to? If not, why not?
  • If you have data from several years, how does last year’s revenue and profit performance compare?
  • Did you spend more than you make or more than anticipated? Which areas of business ate up most costs?
  • You should’ve set sales goals for 2019: did you meet them?

By following these business accounting tips, you can properly examine your business’s key metrics of growth, revenue, and sales. For example, if you’ve noticed your sales numbers stagnating or decreasing, now is the time to reevaluate tactics. The answers are in the numbers!

What other resolutions do you have for better financial management? What goals have you set for the new year? Schedule an appointment with us and let us know your objectives. As a one-stop shop for all your accounting and tax needs, we can take a look at your business’s financials and goals and help you plan for the year ahead. We start off with a consultation meeting to fully understand your needs and then customize a plan that suits your business.. If you want to learn more about how outsourcing your finance department can help your business succeed, give us a call at 647-476-2145.

Leave a Comment

Your email address will not be published. Required fields are marked *