For many people, the end of a year wouldn’t be complete without making resolutions for the next one. Now I’m not talking about cutting out the doughnuts or working towards running a marathon (I’ll leave that to my super fit husband!) However, I know I CAN set achievable goals that will contribute to the success of my business.

So, as you get ready to take on 2022, why not take the opportunity to examine your company’s financial health and look for ways to make improvements. Have a look at some of my suggestions for your New Year Accounting Resolutions for 2022.

Keep an eye on your Books!

It sounds like common sense, but it is important to make it a goal to understand what it going on day to day with your business.

To help you accomplish this important task, why note strive to review your books on a weekly, or at least monthly, basis. This helps you to monitor cash flow and be aware of the revenue earned and expenses incurred by your business.

This could be as simple as using your accounting software to run a monthly Profit and Loss report to scan over the financial position of your business. It might only take 5 minutes, but this simple routine can help you to discover and identify issues, giving you the opportunity to fix it, or get help, in a timely manner.

Seek Tax Plan

As the owner of your business, HMRC ultimately holds YOU responsible for ensuring your business taxes are filed properly. That’s a lot of pressure if you don’t really know what you’re doing. But by seeking professional tax planning advice, you’ll feel confident your business is complying with all the latest regulations and requirements, and that your finances are well and truly being looked after.

Seeking tax advice is also an effective way to save money! Why? Tax professionals can advise you about deductions and tax savings that your company might qualify for. After all, money is always better in your pocket, right?

Update and Outsource Your Payroll System

Updating your payroll system can both streamline your business operations and save you money. The laws on paying directors, hiring contractors, minimum wage and enrolling in pension schemes are changing all the time. By outsourcing and updating your payroll, you can check the status of all your workers, making sure they are all being paid correctly and legally.

Oh, and it saves you the fuss of having to do it yourself too… We can help if you need us to. Take a look at our Payroll Services HERE.

Collect Unpaid Customer Invoices Efficiently

I know, this one is probably the worst part of running your own business. You’ve finished the work; weeks have passed, and you STILL haven’t been paid. You don’t want to seem so pushy that it loses you a customer, but equally, cash flow is what keeps a business running. After all, getting paid is what we all go to work for!

So, when a customer’s invoice remains unpaid for a long time, start by checking the essentials!

  • Is it something you’ve done wrong? Such as sending to the wrong email address or using outdated company details?
  • Is the invoice in question, correct? Do the value and payment terms match those agreed quote?
  • Are all the elements of a professional invoice present including the exact amount owed? E.g. Have you included VAT at the right rates?
  • Make sure you DEFINITELY sent the invoice to the customer! (Even as an accountant, I sometimes am convinced I’ve sent the invoice, only to log onto my accounting software and see it sat in my drafts!)
  • And finally, determine if the due date for the payment has already elapsed.

If the invoice is outstanding, take a deep breath and consider sending them a polite and friendly e-mail to give them a nudge. Ask your customer to check to see if they received the invoice and kindly offer to resend it if they’ve lost it. The likelihood is, they’re as busy as you are, and simply have forgotten. By being nice, but firm, you’ll likely increase your odds of collecting the cash for the invoice and retaining the customer.

Consider Outsourcing some of your Accounting Services

Does it ever feel like you never have enough hours in your day? Saturday comes around and you want to relax after a busy week but realise you’ve got ALL of your company admin to catch up on before Monday rolls around again. This may especially be the case if you’re trying to do all of your company’s accounting in-house. Outsourcing accounting tasks can increase both your business’s efficiency and performance by:

  • Decreasing costs
  • Improving your tax position
  • Making sure you are complying with all legislations and regulations
  • Taking advantage of deductions and savings you didn’t realise you qualified for
  • Giving you access to the professionals who can answer all your questions
  • Providing you with access to financial reports
  • Giving you extra time to do the job you love

Take a look at our SERVICES page to see some areas where we might be able to help lighten the load.

So there you have it, now you are armed with 5 possible accounting resolutions for 2022! So, why not start now and contribute to a successful and New Year.

And always remember, Submit Accounts are here to help you every step of the way!