With the start of the 2018 fiscal year, many financial deadlines will need to be met by business owners. The first month of the year is crucial for your business. Here are five accounting tips for 2018 to help with the financial success of your company.
Set a timeline for important deadlines
Make sure you have verified employee data which includes PTO, sick pay, and bonus information. During January, make sure all 1099 information is on file and ready to go. An important deadline is January 31st, 2018 in which all 1099-MISC are filed for both individuals and the company.
Be sure to focus on your forecast for Q1 by the end of January.
Implement a budget for 2018 that is reflective of realistic goals
Review and analyze 2017 financials to form your strategy for 2018. Did you meet your goals? Where did you succeed? Where is there room for improvement? Pay close attention to your 2017 expenses to see if there are areas where you can cut costs. Adjust your 2018 goals based on: 2017 performance, industry trends, and outside factors that will affect your business
Prepare a 90-day cash flow forecast for Q1
Start 2018 off right by preparing a cash flow forecast for Q1. By doing this, cash flow can be managed, which is a key aspect of financial management. By not forecasting accurately, there is a risk of missing a payroll or not having enough money to invest in key areas that could help grow your business.
If cash is going to be tight, start looking into financing options. This is especially important for small businesses and start-ups, since they are most susceptible to cash flow issues and need enough cash flow to ensure the company stays afloat. If your company is in its infancy, proper financial planning and forecasting is key to your success.
Archive last years' files and create new 2018 file folders, so you can stay organized throughout the year. Staying organized is key to quickly and efficiently being able to address any concerns or opportunities.
Stay up-to-date with tax laws
Speak with your CPA about the new Tax Reform Bill and how it will affect your business. This is a major change in 2018 and should be addressed.
By following these accounting tips your business needs to do in the beginning of the New Year you can help ensure 2018 will be a financially secure year for your business. The experts at Pro Back Office are available to help with your business accounting needs. Please contact us by e-mail: firstname.lastname@example.org or by calling the office: (858) 622-1681. Pro Back Office provides outsourced accounting services in San Diego and Phoenix, and has helped businesses save money on operating costs.