Now that tax season is behind you, or you’ve at least filed for an extension, you might consider doing a little spring cleaning of your bookkeeping. Small measures often go a long way toward creating greater success for your business. Here’s a checklist of seven things you can do to spruce up your bookkeeping and keep your business headed in the right direction:
Manage Your Paperwork
Now is probably a good time to get rid of all the paperwork you no longer need. Free up some storage space in your filing cabinets by trashing or shredding outdated records. Most records supporting your tax forms can be tossed after seven years.
Consider Going Paperless
Banks, credit card companies, and utilities usually allow you to transact business electronically. You might opt out of paper statements entirely, using online methods of paying bills and moving around money. Some online systems can even be integrated with accounting systems like QuickBooks. If you use a cloud-based service, you may be able to share information easily and safely with partners.
Review Security Measures
While we’re talking about computer records, make sure you’ve got the right security in place to protect your records and systems from outside attacks. If you don’t have IT expertise in-house, it might be worth talking to an IT professional, who can guide you through the security measures you should have.
Update Accounts Receivable
It’s never too early to make sure you’re caught up on unpaid invoices. Make sure you’re collecting money your company is due, including any interest owed for late payments.
Now is also a great time to make sure you’re not overpaying for supplies or services. Check your financial balance sheets to see if there’s anything you might cut or scale back. Read over the fine print on any service agreements you might have to make sure the terms haven’t changed and become unfavorable to you.
Pay Off Credit Card Debt
Credit card debt is one of the most expensive forms of debt you can have. Pay off your credit cards as soon as possible, even if it means taking out a loan or line of credit with a lower interest rate to do so. Use your business credit card only when you know you have the cash on hand to pay off the purchase.
Reevaluate Your Budget Goals
Now that you have a record of last year’s business finances, it might be worth taking a hard look at your current year’s budget goals. Decide whether you want to ramp up or scale back your business activities. Determine if your plans for the future make sense for your business.