Achieve Your Financial Goals in 2022 with the Right Bookkeeping System

It’s the beginning of another year, which means it’s time for another round of new year’s resolutions. If you own your own business, your list of new year’s resolutions probably includes making a certain amount of money in your business, but if you don’t want your financial goals to go the way of most new year’s resolutions, you need a plan.

The first step to achieving your financial goals is to put the right bookkeeping system in place so you can tell if you’re on track to reach those goals or if you need to make some adjustments. Let’s take a look at some of the ways having the right bookkeeping system in place can help you achieve all your financial goals for your business in 2022.

Know Your Numbers

A plan is designed to help you go from Point A to Point B. If Point A is your starting point, you need to know what that point is. How much money is your business making each month? Each quarter? How much of that revenue is profit and how much is going to pay for your business expenses? With the right bookkeeping system, you can know at a glance what your current numbers are and how far you need to go to reach your financial goals for the year. Once you have that information, you can move forward with your plan to increase your revenue.

Keep Track of Your Tax Bracket

It’s important to keep in mind that making more money puts you in a higher tax bracket, which means more of your income will end up going to pay taxes than in previous years. By maintaining a strong bookkeeping system, you can stay on top of exactly how much you owe in taxes so you don’t get hit with an unpleasant surprise when April comes around.

Understanding both your current tax bracket and the tax bracket you’re aiming for can also provide the information you need to adjust your financial goals if necessary. If you don’t want to be in a certain tax bracket, you might want to lower your financial goals. Or if you want to reach a certain amount of profit after all your expenses (including taxes), you might need to raise the total revenue you’ll need to bring in before you can reach that goal.

Keep Track of Your Progress

One of the most important benefits of maintaining the right bookkeeping system is that it helps you identify whether you’re on track to meet your financial goals for the year. Ideally, you should be checking in on your finances on a regular basis to make sure nothing slips through the cracks. Has your business paid all its bills? Has payment for all your invoices been collected – and deposited? Are you on track to make a profit this month/quarter? If not, what adjustments could you make to achieve your financial goals for the year?

Unfortunately, the closer you get to achieving all your financial goals for your business, the less time you’ll have to keep track of your finances because you’ll be too busy taking care of your patients. In that case, even the best bookkeeping system can only take you so far – you’ll need a Bookkeeping Doctor on your team. Reach out now if you’re ready to hire a Bookkeeping Doctor to help make 2022 your most prosperous year yet.