Financial Goals for the New Year
Many of us create a list of New Year’s resolutions to avoid making the same mistakes we made in the past year, and to promote positive change in the coming year. Finding ways to improve your company’s finances should be among your top priorities for 2023. Here are some of the best ways to boost your financial health.
1. Evaluate current expenses and establish a budget
Request a meeting with your bookkeeper to organize your books and review your current expenses for accuracy. Study your revenue and expenses and determine areas of waste or inefficiency. Review your vendor contracts and see if you can renegotiate pricing. Once you calculate your monthly expenses, decide if there are places you can cut back on. Then establish a reasonable budget to follow on a weekly basis. Review the books at least once a month.
2. Review your payroll processes
Streamline your payroll process to reduce costs and save time. Make sure employee data is current in your database. Review vendor payment processes to make paying invoices quick and easy. Paying your staff electronically instead of issuing checks reduces the amount of resources you need to use with each pay cycle.
3. Take inventory
Evaluate your current stock in hand and establish an ordering system to reduce duplication and waste. Establishing an organized, easy-to-follow ordering system will save you time and money.
4. Set measurable goals for the new year
Review your revenue and expenses for last year, and determine a reasonable goal for increased revenue, growth, and sales objectives for the coming year. Establishing goals can help you remain focused and motivated. Also consider sharing your goals with your key staff members, which can help the entire company focus on a shared mission.
5. Determine your tax strategy
Tax laws often change, so you should make it a priority to meet with us at Root Tax to discuss your current tax strategy and make any necessary adjustments for the new year. You don’t want to get caught with surprises or regrets when tax season rolls around.
These goals may seem daunting at first, but going through each step can make it more manageable and less overwhelming. With a team of bookkeepers and tax professionals, we can help answer any questions you may have and support you in achieving your goals.
If you’re struggling with your own books or to get timely and accurate bookkeeping from your existing provider, please reach out to us here at Root Tax to schedule a time to discuss how we can best support your needs.