New Year Accounting Resolutions for Businesses

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It is expected that every firm wishes that 2021 will be their year, and they would like to make the most of it. At ATS Accounting & Tax Edmonton, we are sure that many firms have made numerous wishes and resolutions last year, too, but failed to fulfill them. There are multiple reasons why they might have failed. Some of them debatable, while the others being obvious blunders. Almost every firm wants to have their accounts on track so that they can understand what mistakes they are making and eventually double up on their profits. But for this to happen, there are multiple things that a business needs to do from an accounting point of view. These things can be your new year’s resolutions. So in this article, we are going to discuss some of the things that should be your accounting resolutions for the year 2021 with the ways you can actually fulfill them.

1) Conduct a Complete Financial Review

Yes, we are aware that this is not the financial year-end, but performing a quick review of your accounts would not do any harm. All you need to do is go through your accounts, check for all the sales receipts and sales notices, go through all of yours and your business’ professional expenditure and see whether they add up or not. In case they are not adding up, you may require to call up a chartered accountant from your vicinity. The reason why we suggest that you hire a professional chartered accountant is that they are trained in these things and they can pin down the reasons as to why your accounts are not matching with your expenditure. Therefore, saving your firm from a lot of trouble in the future.

2) Understand Your Tax Expenses

It’s always good to know beforehand what is the amount of tax you will have to pay the government as and when you near the financial year-end. So the next time you get the opportunity, call up your chartered accountant or hire a new accountant for help. What a chartered accountant would do for you is they can go through your details to understand anomalies, if any. Therefore, assisting your business to thrive and you have a hassle-free year-end. 

3) Focus on Customer Service

All the firm requires to do in order to thrive is to make their customers happy. This is because they are the reason why your firm is operational in the first place. So when you conduct your next financial meeting, consider whether your sales are falling because of sloppy customer service. If that is the reason for your firm’s near downfall, always consider revamping your customer services section. This goes on to assist your firm to maintain its accounts and keep making profits to have a great year ahead. So this is one of the most important resolutions for your firm to make in 2021.

4) Update Accounting Systems

Your accounting systems are just as important as the sales aspect. This is because if your accounts section is not up-to-the-mark, you will face a major challenge when you are dealing with year-end tax payments. This is because if you don’t have a clear idea of what happened during the year in written format, you will be left alone, spending days and days on end trying to understand how your firm operated over the last year. So yes, do get in touch with an external accountant to look at your systems and give you a bird’s eye view of the challenges faced by your firm. This will just go on to assist your firm in thriving through ages.

5) Be Aware of Tax Laws 

Often companies make the accounting mistakes of not being aware of the tax laws. When this happens, the companies are left hanging in the middle. This is because they are not aware of the recently changed tax laws. Eventually what happens is they don’t realize whether the current tax law will affect their operations in a positive or a negative way. So always ensure that you are up to date with the constantly changing tax laws. If in case you are not able to understand any of the laws, do not hesitate to get in touch with an accountant. This is because they are professionals and are aware of the constantly changing tax laws. They will be better able to make you understand how the current law will be affecting your business and how you can avoid getting your firm into trouble.

6) Keep a Track of Your Finances

This is of high importance for a multitude of reasons. Some of these reasons include you having an effortless year-end tax-paying time. A way to keep track of your expenses is by making digital copies of your expenses and upload them directly to your accounting software. Doing so saves a lot of time for you when you actually have to start with your year-end tax-paying season. If you have paper receipts, you can always opt to take a picture of those receipts and upload them directly to the software. If in case you find this to be too consuming for you, always opt to get in touch with professional chartered accountants so as to help you in understanding how you can keep track of your finances.

All we suggest is making the right decisions so as to have the right type of 2021. If accounts of your firm still challenge you, always consider contacting financial advisors near you like ATS Accounting & Tax Edmonton to help you make 2021 one of your most profitable years. Call us today for more information.

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