Financial Resolutions: Entrepreneur Edition
Actionable Steps Small Business Owners Can Take for a Successful 2024
December is more than just the season of feast and festivities; it’s a crucial time for Canadian business owners to lay the groundwork for a successful new year.
So, as you cozy up by the fireplace (or your laptop) these holidays, wrapping up the current year, here are a handful of effective strategies to not only elevate your business but also streamline your day-to-day operations:
1. Review and Adjust Your Budgets
Now is the ideal time to review your business budget for the current year and plan for the upcoming one. According to a survey done by Quickbooks Canada, 64% of small businesses in Canada cited they were facing cash flow issues.
So spend some serious time analyzing your expenses, revenue, and profit margins. Identify areas where you can cut costs or reallocate resources for maximum efficiency. When planning cash flow, make sure to account for principal payments, upfront inventory and equipment investments.
Utilize bookkeeping tools, with up-to-date bookkeeping, will also help to gain insights into your financial data, making informed decisions for a financially sound future.
Tip: Leverage cloud-based accounting solutions for real-time budget tracking and collaboration, ensuring that your financial data is accessible and up-to-date.
Our favourite: Quickbooks Online
2. Optimize Your Cash Flow
As we know, cash flow is the lifeblood of any small business. Assess your receivables and payables, and identify any overdue payments or outstanding invoices.
Implement a proactive invoicing strategy to ensure timely payments. Consider offering incentives for early payments to improve cash flow. Use historical data from your bookkeeping records to anticipate seasonal fluctuations and plan accordingly.
Tip: Utilize an online application specifically for small businesses to collect ongoing payments that allow businesses to schedule one-time or recurring payments, set the amount, frequency, and date for payments, and obtain authorizations from customers.
Our favourite: Rotessa Payments
3. Prepare for Tax Season Ahead of Time
Stay ahead of the tax season rush by organizing your financial records early. According to Statistics Canada, in 2017, small and medium-sized enterprises (SMEs) in Canada accounted for 41.5% of the total business sector revenue.
Speak with your bookkeeper and spend the time reviewing all of your transactions, expenses, and deductions to ensure accurate and up-to-date reporting.
Tip: Consult with a CPA tax professional to maximize your eligible deductions and ensure compliance with the latest tax regulations.
4. Prioritize Business Owner Self-Care
Amid year-end tasks, don’t forget to prioritize your well-being. Running a business can be demanding, and taking care of yourself is essential for sustained success. According to a survey by BDC (Business Development Bank of Canada), 45% of Canadian business owners indicated that they felt mental health challenges.
This holiday season, schedule time for rest, set realistic goals, and sit down to write a list of tasks you could potentially delegate in the new year. A refreshed and focused business owner is better equipped to make strategic decisions for the future.
Tip: Incorporate regular clarity breaks into your schedule, engage in activities you enjoy, and consider seeking the support of business mentors or support groups.
So, as the winter chill settles in and the holiday season unfolds, Canadian business owners have a unique opportunity to fortify the foundations of their ventures for the upcoming year.
– Because December isn’t just about wrapping presents; it’s about wrapping up the year on a high note.
Are you ready to focus on the numbers in 2024? Then let’s get started today! Contact us here.