The new year is a time for fresh starts, and for many, that includes making financial resolutions. But let’s be honest, how often do those resolutions fizzle out by February?
This year, let’s break the cycle and set ourselves up for financial success. Here are some actionable resolutions that can actually stick.
Track Your Expenses
Understanding the flow of money in and out of your business is crucial for making informed decisions, identifying potential cash flow problems, and ensuring long-term stability.
Keep detailed records of all your business expenses. Whether it’s through a spreadsheet, a budgeting app, or old-fashioned pen and paper, tracking expenses helps you stay aware of your spending and prevents surprises when the bills come due. It also acts as a valuable reference point for future planning and budget adjustments.
Build a Financial Safety Net
Unexpected events can derail even the most well-planned businesses. A strong financial safety net provides a cushion during challenging times, allowing you to weather storms and continue to invest in your growth.
This might involve building an emergency fund with 3-6 months of operating expenses readily accessible. Consider diversifying income streams by exploring new products or services, and negotiate favourable terms with suppliers.
Invest in Your Future
Continuous growth and innovation are essential for long-term success. Investing in your business – whether it’s through new equipment, employee training, or marketing initiatives – can unlock new opportunities and drive profitability.
This could involve upgrading to faster computers and software to streamline operations, sending your team to industry conferences to expand their skills, or launching a social media campaign to reach a wider audience.
Improve Your Financial Literacy
A strong understanding of financial terms is essential for making good business decisions. By understanding concepts like budgeting, saving, investing, and debt management, you can make informed decisions about not only your business’s finances but also your personal finances.
Some practical steps to improve your financial literacy include reading books and articles on financial topics (such as budgeting, investing, or money-saving strategies), taking an online course or attending a workshop, or seeking advice from a financial advisor or your accountant.
How Chorus Accounting Can Help
Making these resolutions stick requires consistent effort and discipline. But by taking small, consistent steps, you can achieve your financial goals and build a strong financial foundation for the future.
Here at Chorus Accounting, we are here to work alongside you and help you succeed. If you’d like our help with sticking to your financial resolutions, please call 01202 332500 or email info@chorusaccounting.co.uk and one of the team will be happy to help.
