Sticking to your New Year’s accounting goals
Do you have a New Year’s resolution for 2020? Maybe you’ll finally take your gym membership for a spin. Or perhaps it’s time to quit smoking. Could this be the year you change your life in some dramatic fashion?
We don’t want to dampen your enthusiasm, but research shows less than 25% of people actually stay committed to their resolutions after just 30 days and only 8% accomplish them. But is it all doom and gloom?
The problem with resolutions
Those figures might be a little discouraging. But it might help you to know that the reason for the low success rate isn’t because we’re a weak-willed nation. Instead, it’s simply the way we go about creating New Year’s resolutions.
They’re too vague. We say, ‘I will go to the gym more often’. But if you don’t go now, ‘more’ could just mean once a month. Or even once a year. There are no strict boundaries so no reason to stick to our resolution.
A big one for business owners is simply wanting to get their finances on track. As we know, business finances and accounting aren’t always the most straightforward, so this resolution is simply too vague.
Set goals, not resolutions
If you want a business with a strong cash flow and a great financial standing into 2020, you need to set yourself goals, not resolutions. Why? Because goals are specific. They give you detailed tasks to work towards and complete so you can measure your progress and stay motivated. Goals answer the how, why, when, where, and with whom questions, rather than creating them like resolutions. So, for your accounting, what goals should you set yourself?
New Year accounting goals
You can put some of these goals into action right now. Others might be something you’re working towards. You can:
- Review your finances – Go through all your receipts, invoices, and statements, making sure everything adds up. Technology can help you make this a simple task.
- Talk to your accountant – If there are things you’re unsatisfied with, now is the time to lay everything out on the table to go into the rest of 2020 with a strong team behind you.
- Review your growth, revenue, and sales goals – Are you still on track or do you need to change direction?
- Get up-to-date with new legislation and tax deadlines – Even when you have an accountant, you should still be aware of the laws affecting your business to protect yourself.
- Update your payroll – You might want to give bonuses or review employee statuses and make relevant updates fresh for the new year.
- Get your accounting software up-to-date – Is your existing software still able to take care of all your needs or could you use an update?
These are only a few examples of the small goals you could set yourself which will help you move towards your main goal: building a successful business. And if you have a personal New Year’s resolution, you can use this same tactic. Maybe you will actually get to the gym this year.
At Big Hand, it’s our goal to be a guiding light for business owners looking to make beneficial changes across their company. We take care of your accounting needs so you have all the time you need to use our quality business advice to take the right steps forward. For more information, get in touch with us on 0161 327 2911.