The weather is heating up BIGTIME – the dog days of summer are definitely here! For business owners, that means it’s time to think about some key accounting tasks that will help keep your business in good shape heading into the second half of the year. Here are four essential accounting tasks that you as an NJ business owner should tackle during the summer months.
Budget and Forecasting for 2023
The summer months are a great time to start thinking about your budget and forecasting for the upcoming year. This will give you a good idea of where your business stands financially and what areas you need to focus on in order to improve your bottom line. If you don’t have a budget or forecast in place, now is the time to create one. Ask yourself what your goals are for the upcoming year and what you need to do to achieve them. Once you have a clear plan, you can begin to work on your budget and forecasting. A helpful tip is to use financial planning software to help you with this process, as well as reviewing last year’s numbers to get an idea of where you need to make changes.
Review Your Accounting Software
If you’re not using accounting software, now is the time to start. There are many different software programs out there that can help you manage your finances and save time on bookkeeping tasks. Take some time to research the different options and find one that fits your needs. Once you have selected a software program, be sure to set aside some time to learn how to use it. This will be well worth your time in the long run.
Clean Up Your Accounts Receivable
If you have outstanding invoices, now is the time to start working on collecting payments. The sooner you can collect on these invoices, the better off your business will be. Send out reminder emails or make phone calls to customers who are behind on their payments. It’s also a good idea to offer a discount for customers who pay their invoices early. This can help you motivate customers to pay their invoices in a timely manner.
Review Revenue Recognition and Lease Accounting Standards
If you haven’t already, be sure to review the new revenue recognition and lease accounting standards. These changes went into effect for public companies in January 2019, and private companies had until January 2020 to comply. Review the new standards and make sure you understand how they will affect your business and your profit margin. If you have any questions, be sure to consult with your accountant or financial advisor.
Summer is a great time for NJ business owners to focus on some key accounting tasks that will help keep your business on track. At Halter CPA, our accounting team can help you with all of your accounting needs this summer, ensuring that your business is in good shape heading into the second half of the year.