By Michelle Mitchell
With each new year comes excitement, and sometimes fear. Maybe a little bit of both! I know that things can feel uncertain as a business owner, especially given the last few years. Even if you’re not in great financial standing, there are things you can do right now to set yourself up for success. Focus on what you can influence at the moment and that proactivity is sure to pay off.
CEO, I hope you’ve been keeping up with your CFO days because now’s the time to gather up those insights and financial reports. You know what the numbers look like from month to month but now you get to see the big picture. Ask yourself some questions:
- Where has my money been going? Evaluate your expenses, savings, and investments. With small plates accounting, you can be strategic about how your money is distributed. You might consider ways to reduce your expenses so that you can put more into savings.
- Do you see a return on your investment? If you applied what you learned, you should be able to see the impact in your business. If not, you’ll want to take that into consideration the next time you invest your time and money into something.
- How often has money been coming in? It’s exciting when you have your first year of consistent income and are able to regularly pay yourself. Whether or not you reached your financial goal is irrelevant. You’ve accomplished something and it’s important to give yourself credit for that.
You might groan at the thought of this next suggestion, but I promise it will pay off to be proactive here. It’s never too early to prepare for tax season. We all file them around the same time, so you might as well avoid the chaos and book an appointment with your tax preparer right away. They should be able to help you mitigate the amount you’ll pay in taxes, which will save you money for the year ahead.
Part of mitigating that amount is being able to count certain purchases as business expenses. As a small business owner, determining what counts as a business expense seems like a headache but you have the power to start your 2022 off strong and profitable.
For more information, visit QuickBooks ProAdvisor extraordinaire, Michelle Mitchell at