New Years Resolutions – Business Edition

New Year’s Goals Business Edition: A Bookkeeper’s Perspective

Happy New Years! I hope you all took some time to relax and recharge for the coming year ahead, I had a great break with my little ones. Now it’s the perfect time for business owners to reflect on the year been, all the achievements and what you are wanting 2025 to bring and set new goals. Whether you’ve had a successful year or faced challenges, setting clear goals can help you stay focused and organized throughout the year ahead. As a bookkeeper, I often see how businesses benefit from well-thought-out goals, and I’m here to share some ideas that can help you set your business up for success in the coming year.

1. Get Your Financial Records in Order

One of the most common goals I see for businesses is to get their financial records organized. Many small business owners fall behind on their bookkeeping, and this can lead to a lot of stress and headaches when it’s time to file taxes or apply for loans. If you’re guilty of letting your bookkeeping slide, make it a goal this year to stay on top of it. Regularly updating your financial records, tracking expenses, and categorizing your income can save you time and money in the long run.

We can help with this and ensure your books are up to date and provide monthly reports to help free up your time and have peace of mind everything is in order, providing you with valuable insights to improve cash flow and profitability.

2. Set a Budget and Stick to It

A well-crafted budget is a crucial tool for any business. This year, take the time to create a realistic budget that covers both fixed and variable expenses. Don’t forget to set aside funds for unexpected costs and future investments. By comparing your actual expenses to your budget on a monthly or quarterly basis, you can adjust your spending, track your progress, and avoid unnecessary financial stress.

If you’re unsure how to create a budget, get in touch with us and we can help you identify key areas to focus on and help you forecast for the upcoming months.

3. Build an Emergency Fund

Building an emergency fund is an essential goal that many business owners overlook. An emergency fund acts as a financial cushion during tough times, whether it’s due to an economic downturn, slow sales, or unexpected expenses. Ideally, your business should have enough funds set aside to cover at least 3-6 months’ worth of operating expenses.

If you’re just starting to build your emergency fund, set a manageable goal and commit to saving a portion of your profits each month. Over time, this fund will give you peace of mind knowing that you have the financial resources to navigate any challenges that come your way.

4. Reduce Debt and Improve Cash Flow

Many businesses struggle with cash flow issues, often due to unpaid invoices, high-interest debt, or overspending. This year, set a goal to reduce any outstanding debt, especially high-interest loans and credit lines. Consider negotiating better terms with creditors or consolidating debt to lower your interest payments.

Also, work on improving your cash flow by invoicing clients promptly and following up on overdue payments. You can even offer discounts for early payments to incentivize clients to pay on time. By improving your cash flow, you’ll have more flexibility to invest in your business and weather unexpected financial storms.

Tip: Have you heard about Xero repeating invoices for fixed amounts invoiced regularly?

5. Plan for Growth

Setting growth goals is an essential part of any successful business strategy. In the coming year, consider how you can scale your business. Whether it’s investing in new technology, expanding your product range, or hiring additional staff, think about the long-term goals that will help your business thrive.

The beginning of a new year is a great opportunity to assess your business and set goals. As a bookkeeper, I believe that staying on top of your financial health can help you achieve greater success. By organizing your financial records, setting a budget, building an emergency fund, reducing debt, and planning for growth, you’ll be well on your way to a prosperous year ahead. Here’s to a financially sound and successful 2025 for your business!

Get in touch to discuss how we can help you make 2025 a great year by emailing courtney@tos.co.nz

Share this Post: