Have you taken a good, hard look at your bookkeeping habits lately? The beginning of the year is a perfect time to consider brushing up your bookkeeping habits. 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. There’s no reason to overhaul everything. Just start making changes regarding how you go about things moving forward. Little efforts will make a significant difference immediately.
Five steps to drastically improve your bookkeeping habits in 2022
1) Get away from hard copies
One of the top reasons people give for not going paperless is that there is too much to deal with. The truth is that you can keep your paper files and still switch over to digital. Just 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 when the physical paper trail begins to wind down. Not to mention how easily you can access information with the ‘find’ function of your computer.
2) 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
3) One of the best bookkeeping habits to start today is to separate your business accounts from personal accounts
This is a critical piece of advice for every business owner. If you haven’t done it previously then now is the time. Especially as things are going to get more complicated with the tax law changes taking effect in 2022. So make it easier on yourself by setting up separate accounts. And do it today.
4) 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 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.
5) Anticipate and prepare for your tax needs
Find yourself worrying about how you’re going to pay your tax bill each year? This is a clear sign that you’re not paying enough attention. If you know how much you’re making then you have a good idea of how much you’re going to owe. It’s best to set those funds aside now so that you’re not stressed later.
Developing Solid Bookkeeping Habits is One of the Most Important “Behind the Scenes” Operations you can Hone.
Owning a business, particularly a small one, presents a number of challenges. Managing your financials is one of the biggest and most important one there is. Even if you use accounting software and have a bookkeeper, as the business owner you need to establish important accounting processes to manage your finances.
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. We at Nissen and Associates look forward 2022, and wish you and your small business continued success.
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