The cold January weather has arrived in New England making it all the more appealing to stay inside. There’s never a time that I don’t enjoy bookkeeping work but on a cold January day, cozy in my Wayland office, bookkeeping brings with it a familiar sense of calm and comfort. For bookkeepers, January has a familiar flow – closing December, finalizing the prior year financials for the CPAs, and 1099 prep and filing.
Last year, despite all its challenges and unfamiliarity, ended with numerous success stories for Harmoney clients. We witnessed how each of our clients persevered through the early, then later, months of the COVID-19 crisis each in his or her own way. Now, in the early weeks of 2021, each client is its own uplifting success story. We stand in awe of our clients’ 2020 accomplishments.
At this time of year, we’ve got one eye on 2020 and the other on 2021. Always focused how we at Harmoney can help our clients to make it another great year to be in business, I offer these small but meaningful adjustments that business owners can institute to save time and money throughout the year.
5 Tips for Business Owners to save money all year
Keep your business and personal finances separate. Completely separate. Personal finances have no place in business bookkeeping. By committing in 2021 to keep business and personal separate, you will reduce your annual bookkeeping costs and benefit from better, more clear reporting.
Collect a W9 before issuing payment to new vendors then pass the W9 to your bookkeeper. Chasing down W9s in January is inefficient, expensive and may delay timely filing of your 1099 forms potentially resulting in fines.
Vow to stay current on your monthly invoicing this year. Falling behind can negatively impact your cash flow and cause potential delays in meeting financial obligations to your vendors and employees.
Review the financials provided by your bookkeeper every month. Financial reports give owners a clear understanding of how profitable their business is (or in some case, is not). Use that information to make solid business decisions.
Price out your monthly expenses, in particular payroll, business insurance & telecom. Reach out to new vendors for pricing. Don’t assume you are getting the best pricing and service – find out for sure (see Harmoney vendor recommendations below).
From all of us at Harmoney Bookkeeping Company, may 2021 be your best year yet and please let me know how Harmoney can help to make it so.