The new year is the perfect time to take stock of where your business is at financially and possible even make some financial-related resolutions. Whether you’re just getting started or you’re looking to expand into a new phase of your business, it’s important to periodically review your financial goals and habits. If you’d like to take it to the next level in the new year, start strong with these financial resolutions.
Stick to your budget
Your budget represents your business’ priorities. Where you allocate your funds represents what you think is most important when running your business. If you’re unable to spend where you’d like, a budget can help you to see where your money is actually going. Creating a budget – and sticking to this resolution – will help you keep your finances in check in the new year.
Cut back on expenses
Now that you have a budget, you can catch any unnecessary spending and work to cut out those expenses in the new year. Maybe it’s a membership program that isn’t much use to your business, or your costs with a particular vendor are too high. Make it a resolution to trim unnecessary business expenses in the new year to boost your profits.
If your business relies on invoicing, then you need to invoice on time to keep cash on hand. Unfortunately, it’s easy for invoices to be delayed in the bustle of the workday. Evaluate your accounting software to ensure invoicing is automatically sent to customers when you’re ready. Create reminders so that customers are aware of deadlines and make it easy for them to pay online. Getting paid faster due to invoicing immediately is a GREAT resolution for any business!
Be proactive about deadlines
Don’t wait until the last minute to pay bills or file paperwork. Set a resolution to taking deadlines seriously. Ask vendors if they offer discounts for early payments. Stay on top of IRS business deadlines. Give yourself an internal deadline for completing tasks with a couple extra days or weeks in case something arises. You’ll feel less panicked about looming bills or tax returns.
Reconcile your bank accounts more regularly
If you were struggling to close your books at the end of the year, do your future self a favor. Schedule time to reconcile your books each month so that you aren’t trying to fill in the blanks for February expenses in December. Checking your accounts regularly as part of your resolutions for 2020 gives you a better sense of how your business is performing.
Reinvest in your business
If you made excellent profits last year, use those funds to reinvest in your business. Upgrade your marketing strategy or buy new technology for your team. Use your profits in a way that helps your business earn even more next year.
Establish a self-directed 401(k)
A self-directed 401(k) allows you to take charge of your retirement fund and your investments. Your self-directed 401(k) can be used to fund a new business or recapitalize your existing business. You’ll have a retirement fund established for your new company and have access to the capital you need to grow your business. Your business can even reinvest in this new plan and defer $60,000+, which definitely represents multiple benefits to your business.
At Tenet Financial Group, we specialize in helping small businesses quickly and correctly establish self-directed 401(k) plans. Contact our funding consultants today or call (888) 901-3335 and select option 9.