From curating a strong social media presence to hiring the best employees, there are many steps that you can take to set your business up for success. However, one of the most foolproof ways to do so is to get your finances in order!
After all, 82% of closing businesses cite financial instability as the cause of their closure – and having complete control of your finances can help to protect you from this.
With that in mind, here are just some of the ways in which you can take control of your company’s finances in 2025.
Look over your financial performance in 2024. Before laying out plans for 2025, it’s important that you look back on your financial performance in the previous year (or years). This will provide you with ample opportunity to learn from any mistakes that you’ve made, such as overspending on specific tasks or not sticking to your budget.
This can also help to ensure that you are as prepared as possible for tax season, as it gives you the chance to get all of your paperwork in order, such as expense receipts and invoices. As tax season is a stressful time for many, this will provide you with much greater peace of mind moving forward.
Set your budget and identify opportunities to save. The first step toward taking control of your finances in the new year is setting your budget. After all, this can ensure that you remain on track to reach your financial goals and that you will not run out of money to invest in future projects.
Furthermore, it also means that you can identify opportunities in which you can save money moving forward. For example, if, based on your research into your financial performance in 2025, you realized that you weren’t getting an ROI in marketing, then this is a clear-cut sign you need to revamp your marketing strategy. You can save money in this regard by taking your marketing in-house as opposed to hiring a third party or by focusing organic growth over paid advertisements.
You can also start to save money by building stronger relationships with vendors, meaning that you’re in a better position to negotiate mutually beneficial deals moving forward.
Track expenses carefully. Tracking your expenses carefully is also key to taking control of your company’s finances in the new year. However, this can prove to be difficult when you are not the only person spending money.
For example, if you manage a fleet of vehicles, individual drivers may be in charge of refueling (using company cards), making it harder to track how and when money is being spent. This can be remedied by investing in gas cards for employees that allow you to monitor individual spending in real-time, giving you a chance to lower operational costs while doing so.
When it comes to tracking expenses, you should also be sure to keep any necessary receipts or invoices. This way, you can closely monitor your spending without having to make estimates about how much you have spent.
Improve cash flow. If you’re worried about your company’s finances as you move into the new year, working to improve cash flow can help to put your mind at ease. After all, this ensures that you have a steady stream of cash “flowing” through your company, allowing you to stay on top of bills and expenses or reinvest scrupulous money into future development.
There are many different ways in which you can improve cash flow within your business, even during quieter periods. For example, you should start by improving your invoicing process. This can be achieved by:
- Discussing payment terms (and fees) with clients in advance so that they do not feel surprised when the invoice lands in their inbox
- Providing clients with plenty of ways to pay their invoices (credit card, bank transfer, etc.)
- Offering to break larger payments down into smaller, more manageable sums
- Offering incentives for prompt payments, such as discounts
- Sending out reminders when invoices haven’t been paid and/or you’ve not heard anything back from the clients
- Adding interest to overdue invoices
Final thoughts. In short, there are many different ways in which you can take control of your company’s finances in the new year, even if you encounter numerous financial challenges in 2024. This will allow you to set your business up for success moving forward while also providing you with much greater peace of mind.
If this is something that you continue to struggle with, you may want to consider hiring or outsourcing an accountant.
