Spring cleaning applies not only to coats and drawers full of junk, but also to cleaning up the business books. Whether you’re a solo entrepreneur or running a small team, financial chaos can creep in fast. Bills are accumulated, slips are lost and salaries? That can be another animal to deal with.
So the question to ask is “when was the last time you refreshed your financial systems?”
The theme of your season is to simplify your books and payroll processes. A handful of intelligent adjustments along with proper tools are all you need to get out of the chaos and, in fact, experience pleasure at maintaining your business orderly.
Start with a Quick Financial Health Check
It is always good, prior to entering deeper into systems and tools, to take a quick audit of the state of affairs:
- Are your books up to date?
- Are you able to tell me your cash flow in the last 3 months?
- Are the payments on payroll and contractors made?
- Do the tax filings and reports take place?
Give and answer of no and you are not sure to any of these, then you should not worry but strictly be on the offensive. Spring is the nice time to update yourself and do something which will facilitate the rest of the year.
Switch from Manual to Digital Where Possible
Are you still on the spreadsheet to run payroll or receipts? It is time to move up.
Manual systems are associated with human error, wastage of time and forgetful details. Instead, it is better to apply the services that facilitate the process and keep everything in one place. This spares you that unenvied routine of ruining through emails and receipts in the tax season.
It was one of the most effective choices that a small business can make? Moving to a modern payroll and compliance platform that integrates with your accounting tools. Such sites do not only compute interests on payrolls, they also do file taxes, maintain electronic records, and remind you when there is something requiring your attention.
There will be no late night counting of numbers. No longer any liability to missing deadlines.
Automate Payroll
If payroll stresses you out every month (or week), you’re not alone. Some small business owners even confess that it is one of the least favorite activities that they avoid and the most mysterious.
That’s why switching to a modern payroll and compliance platform is such a game-changer. These systems:
- Digitize payroll calculation Automate payroll calculation
- Payroll withholding of taxes on employees and contractors
- Automatically file payroll taxes forms
- Create W-2s and 1099’s at year end.
- Give employees direct deposit dashboard and self-service dashboard
Seems like the dream? It is quite legitimate; and quite available. Such systems as Gusto, Rippling, or OnPay cater to small business needs. You do not need to be a finance professional in order to use them.
And in case you have distributed or international teams, most of these tools also do international compliance so that you can pay people correctly wherever they are.
Bookkeeping Basics
Payroll is not all of your financial ecosystem. It starts with bookkeeping and when the bookkeeping is not clean, everything is out of rhythm.
In case you would like to get your bookkeeping into fighting shape here are a couple of spring like suggestions:
- Reconcile your accounts weekly (not just monthly)
- Codify expeditions on the regular basis
- Review past invoices, follow up on late payments!
- Take photos and save receipts with such apps as Dext or Expensify
- Your accounting software can synchronize with your bank accounts automatically
In the event that it is behind, take an entire afternoon to clean it up. Prevention is more convenient than cure because it takes almost months to renovate a system already in ruin.
Plan Ahead for Tax Time (Yes, Already!)
It can seem premature but it is a very good time to prepare next tax season. Set up for:
- Income reports
- Expense receipts
- Payroll summaries
- Contractor payments
- Four times a year filing of taxes
Even a small preparation at this point will result in a lot less panic down the line. And your accountant will adore you, and he or she will likely charge you less because you are so good to be organized.
Create a Habit, Not Just a System
How does one make a system stick? Habits. A financial power hour to:
- Run payroll
- Go over night profit/loss
- Reconcile transactions
- Out or follow up on invoices
Put it as a no-no. Schedule it. Play your favorite play list while you do it. You have time and whatever it takes, such a small routine can help you avoid such a mess at the end of the year and burnout.
Final Thoughts
It is spring, the time to grow new things and it is time to get a new start with your business finances. By decluttering your processes, automating your systems, and using a compliance platform and modern payroll, you’ll save time, stay compliant, and feel more in control.
Do not get bogged down with obsolete practice or money mismanagement. Take one small step this week to simplify and your future self (and your bank account) will thank you.
