Five Accounting Resolutions for 2013
Improving your company should be a constant effort. Here are fie resolutions to make for 2013 to improve your company's accounting and business.
Outsource the work that doesn't benefit your top or bottom line – Business owners should not spend one, two, three or four or more hours a day doing administrative work that doesn't directly impact the company’s growth and future. Business owners are the face of the company and shouldn't spend all their time behind a computer and a stack of paper. Outsource the accounting work to a qualified accountant that can take over receivables, payables, and general oversight of the company’s accounting needs. Use a payroll company that can also help you with HR related issues. Don’t try to wear all the hats in the organization.
Review – Create a monthly or quarterly review process. Review margins, receivables, payables, and cash forecasts. Sometimes business owners aren't as profitable as they think they are. You may get a great margin on a sale, but are you thinking about your overhead costs, how long the product sat on the shelf, etc? Are your prices to low/high? Your product/service may need price adjustments. Reviewing these items regularly will ensure your company doesn't fall behind needlessly.
Automate – As your business expands, make sure that efficiencies are found where available. Credit card processing, storing bank information for clients, or automating payments can assist in becoming more efficient. Upgrading your accounting software or billing practices can also help.
Plan – Speak with your CPA a few times throughout the year not just at year end. Planning with your CPA can help minimize taxes. Planning expenditures, creating retirement plans, and taking advantage of certain deductions can all help minimize taxes.
Take action – Most resolutions never get off the ground. Make a concerted effort to do at least one thing that will help your accounting in 2013. The first step is usually the hardest!
BizCFO is an accounting and finance consulting firm with offices in Santa Monica, Orange County, and San Diego. For additional complimentary information regarding this topic or other questions you may have please call one of BizCFO’s offices or contact us here.