It seems like everyone is breathing a sigh of relief now that spring is finally here. With the snow melted and flower buds starting to sprout, you may find yourself doing some much needed spring cleaning after the frigid winter.
Along with dusty closets and dirty floors, it’s also a great time to blow the cobwebs out of your business’ bookkeeping records and make some improvements that will help you move forward this year.
With tax season over, many of us have had a chance to get a close look at our finances. If you had to endure a grueling tax season this year, let’s take a moment to run through some helpful tips to reorganize your finances and make next year a breeze.
1. Revisit your bills and expenses
If you’ve still got your bills together from tax season, it’s worth it to run through them again with a critical eye. For those who hire contractors and have a variety of recurring business expenses like service subscriptions, this is a great opportunity to take a deeper look into how vital those expenses really are and how much return they’re generating for you.
Note which expenses you may be able to renegotiate for a lower cost or look into further for discounts that might exist. If you’re unable to renegotiate, do some research into cheaper options that might not have been available when you first signed up.
2. Go paperless if you haven’t already
If you’re still wasting time shuffling through file cabinets around the office, this is your opportunity to step into the 21st century. Just like the satisfaction of clearing out a closet of old clothes, you’ll feel a whole new sense of freedom from the past when you finally go completely paperless.
Run through your files and scan the essentials into a digital archive you can call on with a few clicks rather than a half hour of searching.
If you do make the switch to digital file keeping, don’t go too crazy with the shredder. Make sure you’re hanging onto tax records for at least seven years, and don’t toss your bank and credit card records until you’ve got everything scanned, categorized, and archived.
If you’ve been wondering which documents you should be hanging onto, check out this handy financial filing guide from Bankrate here.
3. Reassess you budget and make any necessary improvements
After reviewing bills and expenses, apply any changes you were able to make to the budget or spending plan you’re currently working with. If you haven’t broken out the magnifying glass to examine on how well you’re sticking to the plan you laid out for the business, this is the time to do it.
Note any areas where spending seems to have gotten out of scope and highlight the places where you may have over budgeted.
If you’ve been constantly tinkering with your budget multiple times each month, you’ll definitely want to take the time to sit down and work out a plan that you can follow consistently month-to-month.
If you’re a small business or startup owner in Madison, WI looking for a reliable outsourced bookkeeping service, contact us today to learn how we can help you focus on growing your business.
Photo credit: itsgreg