The new year is always a good time to make a fresh start, and this is the case for businesses as well as for individuals. It is a good time to review what you are doing and see where you can make improvements.
One of the most important steps you can take is to review the way you do your accounts and look for ways to improve what you are doing.
Keeping accurate business accounts
Doing this is the only way that you can keep your finger on the pulse. For example, if you want to be able to use your cash flow reports to spot up and coming issues you need to be working with accurate and up to date data.
If you have not bothered to put in the cost of buying raw materials over the next two months to buy what you need to fulfill a big order you could easily end up thinking that your accounts are in a better state than they actually are. You will not be able to spot the fact that buying those materials will leave you unable to pay your power bill. If this should happen you could easily find yourself being cut off. Every year, otherwise profitable businesses end up folding because they have not kept a proper eye on cash flow.
The new year is a good time for a review of your business accounts
Without a doubt the new year is a good time to carry out a review. Most firms are nowhere near as busy at that time of the year, so it makes sense to use that downtime productively to review your processes, and update them if necessary.
It is also a good time of the year to introduce change into your business. People are ready for a fresh start mentally. They are in a positive frame of mind and often energized by the fact they have had a couple of weeks off.
How to do it
Start by bringing your accounts 100% up to date. Then go through how you currently gather the data and input it.
Eliminate accounting inefficiencies
An awful lot of firms accountancy processes evolve over the years. Often they are put in place as fire fighting processes, so they are rarely efficient. Therefore, it makes sense to review what you are doing and eliminate inefficiencies such as entering the same data in two or three different places. This not only wastes time, it also heightens the chance of inaccuracies.
Retrain your staff
The new year is also a good time to introduce new accountancy software, and consider updating the training of your accountancy staff.
Get everyone involved in entering your accountancy data
It makes sense to only key things in once, so consider getting others involved in compiling your accounts. There are some fantastic apps out there that allow you to do this. A good example is getting your reps to key in their expenses as they occur. So, train them to enter their petrol receipt into an app like Expensify as soon as they get back into their car, and do the same with all of their other expenses. This app can be set up to feed the data straight into your business accounts system. It is a great example of how you can cut out double keying of data, and make sure that your accounts are 100% up to date.