As 2024 comes to a close, it’s time to reflect on your business’s financial health and prepare for the upcoming year. Tackling these critical bookkeeping tasks now can save you time, money, and stress as you head into 2025. Here’s how you can start the year on the right foot.
Switch Payroll Providers Now!
If your current payroll system is eating up too much of your time or budget, now is the perfect time to make a change. Transitioning to a more efficient provider in early January can save you headaches down the road.
- Why act now? Early action minimizes errors that could lead to prolonged problems with tax filings or employee payments.
- Cost-efficient setup: If you are engaging your bookkeeper to manage the transition for you, doing so at the beginning of the year is more cost effective than waiting until later in the year (or something like this. Savings is due to less time required to implement)
Move From a Shoebox (or Excel) to a Robust Accounting System
If you’re still managing your books with spreadsheets or stuffing receipts into a shoebox, it’s time to upgrade to a modern accounting system.
- Why upgrade now? January is often a slower period for many small businesses, giving you time to set up and learn the system without the pressure of peak activity.
- Long-term savings: Getting organized now is far less costly than trying to reconcile months of financial data later. Cloud based accounting apps are great tools to simplify your bookkeeping, track expenses, and generate reports, setting you up for success in 2025.
Evaluate Your Tax Election
With April tax deadlines looming, now is the time to assess whether your business is structured in the most tax-efficient way.
- Consider an S-Corp election: If your profits are significant, electing S-Corp status could lower your tax burden.
- Timing matters: The IRS requires this election to be filed by late March, and it’s best to consult with a professional early in January before tax season kicks into full swing.
Schedule a meeting with your bookkeeping or tax advisor to discuss how an S-Corp election could impact your business and ensure you meet the filing deadlines.
Invest in Financial Training
Understanding your financials empowers you to make better business decisions. Investing in training now can pay dividends throughout the year.
- Why start now? The sooner you build financial literacy, the quicker you can implement strategies to improve cash flow, reduce expenses, and boost profitability.
- Options to consider: Many bookkeepers offer one-on-one custom coaching. Other training opportunities include webinars and workshops. Mastering the basics of cash flow management and budgeting will position your business for long-term growth.
Get Organized
Don’t underestimate the power of a clean and organized workspace!
- Organize and archive: Sort through physical and digital files, archiving those you no longer need but must retain for tax purposes.
- Backup systems: Ensure both your hard drive and cloud storage are up to date.
- Office refresh: A clean, decluttered workspace can improve focus and productivity as you tackle 2025’s challenges.
Get Ready for 2025
Starting the new year with a clear financial strategy and organized books can make all the difference for your business. Whether it’s upgrading your systems or exploring tax-saving opportunities, Nailed It Business Services is here to help small businesses thrive.
Contact us today to ensure your financial records are on track in 2025!
