The start of a new year is a great time to set financial resolutions for your business. However, by the time February rolls around, many business owners begin to lose momentum.

Whether you aim to improve cash flow, reduce expenses, or stay on top of tax planning, keeping your financial goals on track requires ongoing commitment and the right strategies.

As an accounting firm specializing in bookkeeping, accounting, payroll, and tax preparation, we understand the importance of maintaining strong financial habits throughout the year.

Here are some actionable steps to help ensure your business financial resolutions stay on course.

Revisit and Refine Your Financial Goals

Many business owners set broad financial goals at the beginning of the year, such as "increase profits" or "reduce debt." While these are great aspirations, they need to be specific and measurable.

Action Steps:

• Break down your goals into smaller, actionable steps. Instead of "increase profits," set a goal like "increase revenue by 15% by Q3 through improved invoicing and collections."
• Set monthly or quarterly check-ins to assess progress and make adjustments.
• To track success, use key performance indicators (KPIs) like cash flow, accounts receivable turnover, and profit margins.

Stay on Top of Your Bookkeeping

Poor record-keeping is one of the most common reasons businesses struggle with financial resolutions. Without accurate and up-to-date financial records, it's impossible to make informed decisions.

Action Steps:

• Ensure the accurate recording and categorization of all income and expenses.
• Use cloud-based accounting software to automate and streamline bookkeeping.
• Reconcile your accounts weekly or monthly to catch errors early.
• If bookkeeping feels overwhelming, consider outsourcing to professionals who can keep your records organized and compliant.

Improve Cash Flow Management

Healthy cash flow is essential for business stability and growth.

Even profitable businesses can struggle if there is a mismanagement of cash flow.

Action Steps:

• Review your accounts receivable (AR): Follow up on outstanding invoices and consider offering early payment incentives.
• Optimize accounts payable (AP): Negotiate better terms with vendors and schedule payments to maintain good cash flow.
• Create a cash flow forecast: Predict upcoming expenses and income to avoid surprises.
• Establish an emergency fund: Having reserves can protect your business from unexpected financial challenges.

Stay Compliant with Payroll and Taxes

Nothing can derail financial goals faster than payroll or tax issues.

Failing to file payroll taxes or missing deadlines can lead to costly penalties.

Action Steps:

• Double-check payroll calculations: Ensure employees and contractors are paid accurately and on time.
• Meet all tax deadlines: Keep track of quarterly estimated tax payments and filing deadlines.
• Review tax deductions and credits: Work with an accountant to identify opportunities to reduce tax liability.
• File W-2s and 1099s on time: Avoid IRS penalties by ensuring compliance with employee and contractor tax forms.

Reduce Unnecessary Expenses

Many businesses unknowingly overspend in certain areas, reducing their profitability.

Regular expense audits can help cut unnecessary costs and keep you better in tune with your monthly budget.

Action Steps:

• Review recurring subscriptions and cancel any that are no longer useful.
• Negotiate better rates on services such as insurance, internet, and supplies.
• Track spending categories and set budget limits for non-essential expenses.
• Invest in financial software that streamlines operations and reduces manual work.

Plan & Manage for Tax Season Year-Round

Waiting until tax season to organize your finances can lead to stress and missed opportunities.

Proactive tax planning can minimize liabilities and avoid surprises.

Action Steps:

• Meet with your accountant quarterly to discuss tax-saving strategies.
• Keep organized records of deductible expenses, business mileage, and eligible tax credits.
• Set aside money each month for estimated taxes to avoid a sizable year-end bill.
• Stay informed about tax law changes that may impact your business operations.

Get Professional Accounting Assistance

As your business grows, financial management becomes more complex. Having a professional accounting firm handle bookkeeping, payroll, AR, AP, and tax preparation can save time, reduce errors, and provide expert guidance.

Action Steps:

• Consider outsourcing bookkeeping and payroll to reduce workload and ensure accuracy.
• Work with an accountant to create a long-term financial strategy.
• Schedule regular consultations to analyze financial reports and optimize business performance.

Work With N.E.W Accounting 

Business financial resolutions are about setting goals and consistently taking action. 

By staying organized, monitoring progress, and leveraging professional support, you can strengthen your business's financial foundation.

Our team at N.E.W. Accounting is ready to handle all your accounting and bookkeeping needs. We have experience working with small—to medium-sized businesses.



Let's work together!