Start the New Year Right: Accounting and Bookkeeping Tips for Small Businesses in 2025
As the calendar flips to 2025, small business owners in Chattanooga, Tennessee, have a fresh opportunity to start the year on the right financial footing. At Callison CPA, we work with small businesses to understand the challenges and opportunities that come with running a business. Proper accounting and bookkeeping practices are key to achieving your financial goals, reducing stress, and maximizing growth potential. Here are our top tips to set your business up for success this year.
1. Review Your Financials from 2024
Before diving into 2025, take time to analyze your financial performance from last year. Review your profit and loss statement, balance sheet, and cash flow statements. Identify areas where your business excelled and pinpoint opportunities for improvement. This reflection will guide your financial planning for the year ahead.
Questions to consider:
Did you meet your revenue and profit goals?
Were there unexpected expenses that need to be planned for in 2025?
Are there opportunities to reduce costs or improve efficiency?
2. Create a Budget for 2025
A well-thought-out budget is essential for managing your cash flow and ensuring financial stability. Use the insights gained from your 2024 review to project income, expenses, and potential investments for 2025. Factor in seasonality, planned growth, and any major purchases or expansions you’re considering.
Pro Tip: Break your budget into monthly or quarterly segments to make it easier to monitor and adjust as needed.
3. Stay on Top of Tax Planning
Tax planning should be a year-round activity, not just a task for tax season. As we head into 2025, there are several key tax deadlines to keep in mind:
January 15, 2025: Estimated tax payment for Q4 2024 is due.
January 31, 2025: Deadline to send W-2s to employees and 1099s to contractors.
March 15, 2025: S-Corporation and partnership tax returns are due, or file for an extension.
April 15, 2025: Individual and C-Corporation tax returns are due, or file for an extension. Estimated tax payment for Q1 2025 is also due.
Working with a CPA can ensure you don’t miss these important dates and help you take advantage of deductions and credits specific to your business.
4. Automate and Streamline Bookkeeping
Manual bookkeeping is time-consuming and prone to errors. If you haven’t already, consider investing in accounting software like QuickBooks to automate your bookkeeping tasks. These platforms can:
Sync with your bank accounts and credit cards.
Track income and expenses in real-time.
Generate financial reports quickly and accurately.
At Callison CPA, we can help you choose the right software for your business and provide training to ensure you’re using it effectively. If you want to focus on growing your business and leave the bookkeeping to our certified QuickBooks professionals, we are here to help with bookkeeping services tailored to your needs.
5. Separate Personal and Business Finances
Mixing personal and business finances is a common pitfall for small business owners. Open a dedicated business bank account and credit card if you haven’t already. This separation makes tracking expenses easier, simplifies tax preparation, and helps maintain the legal protections of your business structure.
6. Revisit Your Payroll Process
If you have employees, ensure your payroll system is compliant with current laws and regulations. Double-check that you’re withholding the correct amounts for taxes and benefits. January is also an excellent time to review employee classifications to avoid misclassification issues.
7. Plan for Growth
Is 2025 the year you plan to scale your business? Whether it’s hiring new employees, expanding your product line, or opening a new location, your accounting system needs to support your growth. Consult with a CPA to forecast the financial impact of these changes and create a plan to manage the transition smoothly.
8. Schedule Regular Check-Ins with Your CPA
Working closely with a trusted CPA can save you time, money, and headaches. Schedule quarterly or monthly check-ins to review your financial performance, discuss tax strategies, and address any concerns. Proactive communication ensures you’re on track to meet your goals and prepared for any surprises.
9. Stay Informed About Tax Law Changes
Tax laws are constantly evolving, and staying informed is critical to ensuring compliance and maximizing savings. In 2025, there may be new opportunities or challenges for small businesses. Partnering with a CPA who understands your industry and keeps up with regulatory changes can provide peace of mind.
10. Start Early
Finally, don’t wait until the last minute to tackle your accounting and bookkeeping tasks. The earlier you start, the more prepared you’ll be for tax season and beyond. By staying organized and proactive, you’ll reduce stress and free up time to focus on growing your business.
Partner with Callison CPA for Success in 2025
We’re passionate about helping Chattanooga’s small businesses thrive. From tax planning and preparation to bookkeeping and financial strategy, we offer personalized solutions tailored to your needs. Let us help you start 2025 with confidence and clarity.
Contact us today to schedule a consultation and learn how we can support your business journey. Here’s to a prosperous and well-organized year ahead!