Hitting the refresh button on your financials with these New Year resolutions.
Its a great time to consider changes you want or need to enhance your personal and professional life. Take some time to reflect at the successes and failures of your life over the past year. What changes are you considering with the New Year rolling in?
Here are financial resolutions for a successful year!
10 Ways to Straighten Out Your Finances This Year
- Take Control of Your Finances
For the health of your business, this is imperative! Whether you have a new or expanding company, your finances should be top priority. In fact, according to many professionals, one of the main reasons for businesses failing is due to lack of control over finances. There are several things you can do monthly to stay on top of your finances like making it a ritual to review your profit and loss statements, keeping your books balanced, and staying abreast of your cash flow reports. The goal is to be 'cash flow positive.' If you are like many small businesses, you are looking for ways to manage your books efficiently. A great way to do so is by investing in accounting software. In addition, having a relationship with a reputable CPA or bookkeeper can be a smart investment.
- Take Advantage of Certain Tax Incentives
To take advantage of certain tax benefits, you should act no later than December 31st, says Deborah Sweeney, who shares “6 Changes Business Owners Need to Know".
- Eliminate Debt
Easier said than done, especially after the holidays. With easy access to online shopping, as well as the traditional, Americans charge over a trillion dollars per year! Ways you can slowly get rid of debt include avoiding impulse buys, researching money saving options, creating a financial plan, living on a budget, and paying all the bills on time.
- Maintain a Monthly Budget
Why do you need a budget? Would you build your dream house without blueprints? Of course not! So, you shouldn't run the finances of your business or life without a blueprint, that is, your budget. Sticking to a monthly business and personal budget is paramount! By doing so, you will have a firm grasp on your expenses by tracking how much is coming in and going out. Two financial tools I recommend are HomeBudget and Moneytrackin.
- Set Specific Time Management Goals
Have you thought about where you want your life to be in one, five, or ten years? If so, then you understand the importance of short and long term goals. Setting specific goals will allow you to manage your time effectively, thus enabling you to reach your goals in a timely manner. For example, if spending time with your family is important, consider working fewer hours at the end of the week so that you can honor that goal.
By organizing your time based on goals that you set, you can gauge if your goals align with your personal and business vision. This will help you in identifying key areas that need modifying.
Stay tuned for finance resolutions 6-10 from Sylvia!