Accounting New Year’s Resolutions for 2017

Five Easy Accounting Tips for Small Businesses
15th December 2016
company tax
Business Accounting 101: What is Company Tax?
20th February 2017
Show all

Did you know that the Federal Bureau of Investigations (FBI) in the United States employs over 1,400 accountants as special agents? While you might not be able to apply for a position at the FBI in 2017, you can take your business accounting efforts to greater heights of efficiency by considering our five accounting new year’s resolutions for 2017! Rest assured – you don’t need to be a special agent to implement these effectively…

Track Your Business Expenses

From the start of the year, keeping track of expenses effectively is absolutely vital to your business accounting efforts. This is a crucial step in properly monitoring the growth of your business, building financial statements, preparing tax returns and tracking deductible expenses. Pay special attention to these receipts:

  • Entertainment: When conducting business meetings at restaurants or coffee shops, write the purpose of the meeting and who was in attendance on the back of your receipt
  • Vehicle expenses: When using your vehicle for business – record the date, the purpose, and the place you used the vehicle. Apply the percentage of use to your regular vehicle related expenses.

Practise Regular Business Bookkeeping

With everything that needs to be considered while running your own business, it is perfectly understandable that bookkeeping becomes a task comparable only to watching paint dry. Contrary to popular belief, bookkeeping is fun! It is also an ongoing process that needs to be given careful consideration on a weekly, monthly, quarterly and yearly basis. Some weekly bookkeeping tasks that will help you along the line include:

  • Recording customer payments
  • Filing supplier invoices and payment records
  • Updating your payroll file
  • Reviewing forecasted cash flow.

Collect Unpaid Invoices Like a Pro

The first step to successfully collecting unpaid invoices is to get your ducks in a row. Before jumping on a customer, make sure of the following three things.

  1. Is the invoice correct in terms of amount owed, and are all the necessary elements of a professional invoice present?
  2. Are you 100% sure you actually sent the invoice out to the customer in question?
  3. Has the due date for payment actually passed?

Once you can answer ‘yes’ to all three of these questions, start by making contact via email. Your customer might have forgotten about the payment and your email will jog their memory. Keep it light and friendly, perhaps mentioning that something might have gone wrong and the invoice may not have made it to them. End off with a phrase like, “Would you check to see if you received an invoice from us? I’ll be happy to resend it, otherwise I look forward to receiving payment by the ….”

Prepare for Major Business Expenses

Unexpected expenses are common when running your own business, and these should be diligently prepared for so as not to plunge you into dire financial straits when things go wrong. Examples of major business expenses include replacing equipment or machinery, repairing of facilities due to natural disasters, and replacing high-ticket office items such as computers and laptops.

Get Accounting Advice from the Best

Balance your books to the tee in 2017 by running all of your accounting queries and concerns past a professional business accounting firm that makes business accounting their business!