Four New Year’s Resolutions for your Business

Can you believe it’s already the end of 2022? Next week, we start a brand new year, and whether you’ve been in business for a few years or are just getting started, there are a few habits you can resolve to do this year that will help your business run well. 

Keep personal and business expenses separate

Hopefully, you’re already doing this, but if you’re not, there is no better time to start. You must keep your personal expenses separate from your business expenses. I can’t emphasize this enough! That means separate bank accounts and separate bookkeeping. If you need money in your personal account, take a draw from your business. If you need items for your business while you are shopping for your personal stuff, use your business debit card and do two separate transactions. This will save you time and stress when it’s time to reconcile your business’s books. 

 If you buy things for yourself and your business in the same transaction, you need to record it correctly in your books, too.

Make a monthly budget

Each month, you should have a written plan for the upcoming month’s income before you receive it. What expenses will you have? How much will you keep in reserve? 

Use small business finance software

Don’t rely on a basic spreadsheet. Use software specifically designed to help track income and expenses for small businesses. I can help you decide which one fits your situation best. 

Reconcile your accounts monthly 

I know using the software makes it feel like you don’t need to reconcile your accounts, but that’s not true. Go over your bank statements and match all of the entries on your software to make sure everything is accounted for and accurate. 

If you do just those four things, your business will already be in better shape than most other small businesses out there. It will help you start the year off right, so you will know how much money you are making and what you are spending it on. If tracking your finances isn’t your favorite thing to do, I recommend hiring a bookkeeper (like me!) to help you manage this side of your business.