Now that tax season is over, you may be taking a deserved break from your bookkeeping or making big plans for what to do with your tax refund. While it’s important to take some time to relax, it’s also important to be proactive with your finances and insure that you aren?t falling behind. With tax season behind you, now may be a good time to think big picture strategy, and there are many easy ways to get ahead on tax season for next year. Whether for your business budget or personal finances, are four easy ways to do some Spring Cleaning with your bookkeeping.
Don?t Let Your Day to Day Recording Slip
The better your day to day records are, easier it is to balance your books. With tax season behind you, now may be a good time to look into new software and tools for the coming years. Apps and technology are developing a mile a minute, and there are many new solutions out there to make daily record keeping quick and simple. By taking the time to research and implement these technologies now will be a great return on investment in the long run.
Think Long Term Strategy
Bookkeeping isn?t just about sorting through your receipts and recording your income and expenses. Instead of using this time to take a break, this might be the best time to evaluate your long term strategy, set goals for the future, and analyze areas for financial growth. Some easy steps to take can include analyzing your technology, cash flow analysis, and financial statement audits. We can also help you with larger scale assessments such as financial projections and forecasting and business succession planning. Wherever you are with your business, hiring a CPA to help you with your big picture goals can help improve your business.
Check Your Debt to Equity Ratio
Every business has to start somewhere. Many new businesses have a high debt to equity ratio, but over time you this ratio should increase to favor equity. If your business is seeing its debt increase without its income and equity also increase, this may mean you are taking on too much debt too quickly. Evaluating these numbers often can help you better understand where your company is at and fuel better business decisions.
Evaluate Your Goals
Financial goals are important. Setting goals is an easy way to benchmark your progress and align your priorities in a specific direction. Times change, and especially for small businesses, it’s important to take some time to reevaluate your targets and ensure you are moving in a smart and profitable direction. By taking the time to outline your financial goals now, you can shift your efforts to match your priorities. Working with your team and a financial professional to figure out the best move for you is a great way to fuel your financial progress moving forward.
While most people make their homes the main target of Spring cleaning, now is also a great time to start cleaning up your finances and taking some time to reevaluate strategy. For companies large and small, implementing better bookkeeping technology, setting goals, and evaluating strategy with a financial professional are all easy ways to clean up your accounting and have a clean and easy plan to execute moving forward. Whether your business is brand new, or has been around for decades, keeping your books in order and planning for the future is important to driving financial success. To learn more about bookkeeping services in Seattle, visit our website today!
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