Massachusetts Bookkeeper: Top 10 Financial Resolutions for Business Owners
Massachusetts Bookkeeper | Start your new year by setting realistic and achievable financial resolutions. It’s important for businesses to keep their plans flexible though.
One way of setting eyes on the prize is to create financial resolutions that work. Here are our recommended top 10 financial resolution for business owners.
1. Set Long-Term Financial Goals
Businesses need to set their vision and objectives first. If you don’t set the objectives for your long-term success, you cannot achieve business success in the short term as well.
All your financial goals will align with your long-term objectives. It’s time to revise and set realistic but ambitious financial goals for your business if you haven’t already. A Massachusetts Bookkeeper can assist.
2. Write and Stick to Your Monthly Budgets
All businesses make monthly budgets. Only a few of them make them in the right way. Further, only a fraction of businesses achieves their monthly budgets.
Variances in budgets are normal. However, failing to achieve the budgets consistently isn’t. This time you should set realistic budgets, and stick to them no matter what. Your Massachusetts Bookkeeper can help you stay on track.
3. Manage Your Cashflows with a Massachusetts Bookkeeper
Cash flow is pivotal for the success of any business in any industry. If you cannot manage the cashflows, you will run out of options soon.
Even the most profitable businesses can go down quickly due to liquidity issues. Thus, set this target as your top financial resolution of the year this time.
4. Assess your Business Expenses
Every business owner keeps an account of business expenses. However, you need to dig deeper. Evaluate your business expenses and see which one of them can be discarded.
Ask yourself questions that relate to business expenses. For example, are you spending the money on the right accounting technology? Do you need professional advice?
5. Separate your Personal and Business Expenses
A closely linked issue for many businesses to the one stated above is mixing up personal and business expenses. Self-employed and small business owners often incur joint expenses.
You need to account for these expenses separately. For tax purposes as well as for the performance appraisals. It will also help you in managing the retained earnings for your business. That eventually will lead you to reinvest in your business more effectively. A Massachusetts Bookkeeper will always recommend to separate these transactions.
6. Pay Down the High-Interest Debt
Debts are inevitable for all businesses. You cannot run a business without debt financing. However, it’s critical to manage your debts and keep the interest charges under control.
An important way of managing debts is to pay down the high-interest debt first. Set this point as one of your top financial resolutions of the year.
7. Secure Flexible Financing
We have all seen two consecutive years of economic recession. It is not unusual that many businesses find themselves under debt. However, raising too much debt financing can be risky for a business.
If you can afford it, find a flexible financing option. One way of doing it is to refinance your different small bank loans into one that has flexible payment terms for you.
8. Start Saving
It is an important financial resolution for individuals as well as businesses. If the current economic recession is going to teach us something, it is to save for the hard times.
Business owners are aware that economic recessions are inevitable. The best you can do is to prepare before the cycle returns to the current situation again.
9. Focus on the Accounting and Bookkeeping Records
Bookkeeping and accounting records set the foundation of any finance department. If you cannot focus on the accounting records, you wouldn’t be able to evaluate your financials.
Invest time and money in your accounting and bookkeeping records. You can start with a Massachusetts Bookkeeper. With the available technology, you can easily outsource the tasks to professional firms. It will set your financial statements on the right track.
10. Invest in the Future Technology
Finally, we would suggest investing in the future technology of your business. For instance, invest in financial technology for your business.
Small but innovative investments in future technology can bring your business on the right track in no time.
Bonus Tip: You can make an endless list of financial resolutions every year. One of the most important ones is to achieve the financial resolutions itself.