Your 2017 New Year’s financial resolutions may be all about saving resources and improving revenue. Again. But consider the following to really help you achieve your financial goals.
The best move you can make is to improve your financial recordkeeping. This helps you prepare for contingencies and monitor your circumstances. If things are good, chances are you won’t consider changing up your recordkeeping, but note: implementing high-quality financial practices now will create a climate for advancement later.
Here are four financial resolutions that will lead to financial success:
Separate personal finances from business records. Nothing creates more confusion than tracking personal expenditures and business transactions with the same system.
Reserve for taxes. Whether you base your effective tax rate on a projection for the current year, or the actual rate from last year, set aside this percentage of your monthly income for tax remittance.
Plan for major costs. Replacing, repairing, or adding equipment; adding more space; moving; or hiring all necessitate large upfront cash outlays. Know what these costs are and when you may need to make these investments. Set aside a little money each month; you’ll be ahead of the game when the time arrives.
Use one bank account and one credit card. Avoid lost receipts and overlooked business expenditures resulting from using personal cash or credit: When the business needs more funds, move personal money to the business account and use it for all company transactions. Have a dedicated credit card strictly for use in business transactions. And have a prosperous new year!