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New Year, New Habits: 5 Accounting Resolutions for a Healthy Business


Introduction


When we talk about New Year’s resolutions, we usually think about joining a gym or eating healthier. But what about the financial health of your business?

The start of a new year is the perfect time to hit the reset button. No more last-minute stress or lost paperwork: this year, aim for peace of mind. Here are the best accounting practices to adopt right now for a prosperous and hassle-free year.


1. Say Goodbye to the "Shoebox"


This is resolution number one. If you are in the habit of stuffing your invoices and receipts into a shoebox or a drawer, stop immediately.

  • The solution: Digitize your documents as you go. There are many mobile apps today that allow you to scan a receipt and send it directly to your accounting software.

  • The benefit: You will never lose a tax-deductible expense again, and you will save precious hours at year-end.


2. Strictly Separate Professional and Personal


This is a classic mistake, especially among self-employed workers and freelancers. Mixing personal and business expenses complicates bookkeeping and increases the risk of errors (and awkward questions from the tax authorities).

  • The best practice: Have a bank account and a credit card dedicated exclusively to your business activity.

  • The benefit: Immediate clarity on your actual cash flow.


3. Mark Tax Deadlines in Your Calendar


Nothing ruins a year quite like avoidable late penalties.

  • The action plan: As early as January, note all important deadlines: tax installments, sales tax returns (GST/QST), payroll deductions, and income tax filing dates.

  • The benefit: Peace of mind and savings on interest fees.


4. Review Monthly (Not Yearly)


Don't wait for the annual balance sheet to find out if you are profitable. Accounting isn't just for paying taxes; it is a management tool.

  • The routine: Block out one hour at the end of each month to review your numbers. Where do your revenues stand? Have your expenses increased?

  • The benefit: You can adjust your strategy quickly if something is wrong, rather than assessing the damage a year later.


5. Surround Yourself with Experts


"Do It Yourself" has its limits. If accounting gives you headaches or takes up too much of your time, delegate it.

  • The advice: A good accountant or bookkeeper is not an expense; it is an investment. They can advise you on tax optimizations you might be unaware of.



Conclusion


This year, give your business the gift of organization. By adopting these few simple reflexes, you will transform accounting from a dreaded chore into a strategic asset.

Happy New Year and here’s to your success!



 
 
 

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