For small-business owners, the new year brings a feeling of liberation. You reset the calendar to day one, along with all the record-keeping and bookkeeping obligations that accumulated last year. Each year you vow you'll stay current with your financial reporting. Well, here's how you can actually do it in 2019.
This is the perfect time to take a big-picture look at the health of your business. Are there ways you can optimize your approach to achieve efficiency and gain a competitive advantage? Technology advances quickly, and there may be better solutions available for your business today than there were when you started — or even a year ago.
For example, it's now easy for small businesses to know their financial status in real time. Using records that update automatically, you can analyze your key performance indicators. Your KPIs can tell you at a glance how your business is performing relative to your budgeting and forecasting (which, by the way, will also be vastly improved with better financial reporting).
Treadmills Don't Help Financial Fitness
To achieve your financial fitness goals, make sure you have the best resources available for your business' current needs. There are many other ways to optimize your business when you keep up with reporting and record-keeping. You can, for instance, use real-time information to determine which product lines are overperforming or underperforming. The sooner you have that information, the sooner you can make the appropriate adjustments to minimize losses and maximize profits.
Also, have you looked into the provisions of the Tax Cuts and Jobs Act to see how they might benefit your business? You might be missing out on some new deductions — or claiming deductions you're no longer entitled to. You might even find that you would be better off restructuring your business altogether.
A Feel-Good Moment That Lasts All Year
Achieving financial health is a lot like achieving physical health. You know what you need to do — and you know you'll feel a lot better when you do it. There's no better time than a brand new year to start.