January is a great time to review your bookkeeping processes and get your business’ finances organised for the new year.
For many businesses, January is a quiet time of year that is best used to review performance and processes and plan and prepare for the year ahead.
Complete the following bookkeeping tasks in January to make looking after your business’ books simple in 2020.
Make sure everything is up to date
Start the new year as you mean to go on by ensuring that your business is up to date with all payments to suppliers and ensure that any late payments owed to you have been chased so that you’re starting the year with a clean slate.
Review your bookkeeping software
The right software can help make bookkeeping tasks quick and simple to complete whilst keeping all your business’ important information organised and secure.
Bookkeeping software can also automate certain tasks, saving you time and reducing the risk of human error.
If you don’t yet use bookkeeping software, or are unhappy with the system you’re currently using, January is a great time to research an alternative solution. We recommend QuickBooks, Freshbooks, Sage and Xero.
The new year is the perfect time to review your business’ performance throughout the previous year in order to create a cashflow forecast for the year ahead.
Identify where any seasonal dips and peaks occurred and create a budget to help you to manage your cashflow over the year.
If you feel like you’re forever playing catchup with your bookkeeping or losing important information, then now is a good time to review and improve on the processes you have in place.
Get organised by setting reminders for submission deadlines and invoice due dates for the year ahead. Create a process to capture and store receipts electronically at the time of purchase to keep your records secure and accurate.
For further help or advice with your business’ bookkeeping and accounts in 2020, speak to our team here at Michael Bell & Co by calling us on 01484 690 730.