While the holiday season is the busiest time of the year for most businesses, it is essential to start preparing for the weeks and months that will follow. When your business is on an upward trend, it is easy to claim it is perfect and doesn’t need to make changes, but there is always room to improve! No matter the size or profile of your business, these are some of the ways you can set up your business for financial success in 2022.
Determine and Line-up Necessary Funding
If you have big plans for the upcoming year, there’s no harm in lining up the necessary funding early on! Once your next significant initiative is planned out, it’s a good time to start thinking about funding it with a business loan. Whether you’re looking to open a new location, expand your product line, or purchase new equipment, there are a variety of loans on the market. Get started by ensuring your business and personal credit scores are in a place that indicates your ability to repay debts both personally and as a business. Next, you’ll want to research desired qualifications and requirements then gather any necessary documentation such as tax returns, income statements, bank statements, business licenses, financial projections, and more. Lastly, have a business plan on hand to demonstrate the use of the loan and your plans to increase profits to pay it off.
Keep a Solid Record-Keeping System
A solid record-keeping system is a foundation for managing all your financial endeavors in the new year. The first step in this direction is to make sure you utilize all a business checking account has to offer. Keeping a unified record will be much easier, from simplifying your taxes to monitoring the business’s overall performance. You then want to take this information and input it into accounting software suitable for the size of your business, but keep in mind to find one that will be able to grow with your business. From there, you’ll be able to develop accurate reports that will identify the strengths and weaknesses of your business throughout the year.
Maintain Safe Cash Management
Don’t leave money lying on the table when you can put a proper cash management service in place. This is one of the essential functions in business, as cash flow determines you have the cash to make on-time bill payments and determine profitability. The easiest way to put this in place is to utilize an automated cash management service that can be accessed via a mobile or online banking platform to get you one step closer to a positive cash flow anytime, anywhere! Such systems allow business owners to input a list of checks written with a list of approved ACH companies. As the Bank receives checks, the system will compare the incoming items and create a list of exceptions as well as to detect and prevent check and ACH fraud, ensuring your cash’s safety year-round.
Create Emergency Reserves
As the past few years have shown, anything can happen! That’s why setting up an emergency fund to cover a few months of operating expenses is essential in 2022. While it may sound complicated, it is extremely easy to set up a business savings account that you can automatically deposit into monthly or weekly. As long as you fit this amount into your 2022 budget, you may not even notice the money is gone, and you will be grateful this task is complete should there be an emergency in the upcoming year.
Are you prepping for the new year? Our business lending services were designed to fit any business profile and make your next year in business the best yet! Contact us today to get the financing you need.
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