3 Ways to Reset Your Accounting For Mid-Year

June is here, it’s already unbearably hot in Tucson, which means it’s time to talk about how you can reset your accounting for mid-year. Since spending time outside is actually painful, let’s fill your time knocking out your inside chores! One of the most important inside chores is preparing to reset your accounting for mid-year.

It’s important to reset your accounting for mid-year because it helps you plan, save, and recreate systems that aren’t working. Keep reading to follow the plan we’ve created for you!

Reset your accounting for mid-year by brainstorming 

Here are some steps to follow while brainstorming your accounting reset:

• Sit down and relax with a notepad. 
• Draw a line through the middle of the page and write Income on one side and Expenses on the other.
• Use these questions to help stimulate your thoughts around your process.
• Think about how you are receiving payment and how you are paying your bills. Is it easy?
• Are there items you wish could be automated? 
• Do you miss a couple of bills every month? 
• Are your clients missing their payments? 
• Are you capturing all your expenses and receipts?
• Are you paying for subscriptions you need to cancel?
• Are you tracking mileage?

Write down all the things that have been bothering you about your systems and then one by one think about what the ideal situation would be.  Again, write it all down. 

2. Start with Revenue

Once you have identified the areas for improvement while you reset your accounting for mid-year, categorize them by priority. Hint: Make sure you think about the items that would increase your income first. 

For example: If you are regularly sending reminders or follow-up calls for payment from your clients, it may be time to set up an auto-payment system or a monthly payment plan that is electronically paying you. Sometimes this is a better option than for both the clients and you. Make it easy for them to pay you.

3. Reset your accounting for mid-year by analyzing your expenses

Once again, prioritize your expenses by priority. Tackle the ones that are costing you the most money first. For example, check if you’re paying double for a particular service OR see how you can pair down software and/or subscriptions.

4. Setup and Admin Day

After you have gone through the above brainstorming session and prioritization schedule a day on your calendar called an “Admin Day.” If you can’t take a whole day to fix these issues, schedule 2 half days. Repeat this process every quarter or every 6 months. It’s important that you regularly take the time to reset your accounting for mid-year.

If you have questions about mid-year accounting, please contact us to learn more about our accounting services!