Start the Year Clean: What to Review in Your Business Finances Every January
January isn’t just about new goals, it’s about starting off with clear, accurate numbers. Before you plan your next launch, raise prices, or hire help, your finances need a reset. A clean financial foundation makes every business decision easier (and more profitable).
Here’s what every business owner should be doing every January to start the year strong.
1. Reconcile Every Account
If your bank and credit card accounts aren’t reconciled, your reports aren’t reliable.
January is the time to:
• Match transactions to bank statements
• Catch missing or duplicated expenses
• Ensure balances are accurate
This step alone can uncover cash leaks you didn’t know existed.
2. Review Last Year’s Profit (not just the revenue)
Higher sales don’t always mean higher profit. Look at:
• Net profit vs. gross profit
• Which months performed best
• Where expenses spiked
Understanding why your money moved the way it did will help you plan smarter this year.
3. Check Your COGS (Cost of Goods Sold)
For makers, product sellers, and creatives, COGS is often the most overlooked number.
Review:
• Material costs
• Labor/time costs
• Packaging and fulfillment expenses
If your COGS isn’t accurate, your pricing probably isn’t either.
4. Clean Up Expense Categories
Messy expense categories = confusing reports.
January is perfect for:
• Merging duplicate categories
• Removing unused ones
• Making sure expenses are categorized consistently and correctly
Clear categories mean clearer decisions.
5. Review Outstanding Invoices & Bills
Unpaid invoices and overdue bills affect cash flow more than most people realize.
Check:
• What you’re owed
• What you still owe
• Whether follow-ups or payment plans are needed
Cash flow clarity is key heading into Q1.
6. Set Financial Goals Based on Real Numbers
Once everything is clean:
• Set a realistic revenue goal
• Plan profit targets
• Decide where to invest (or cut back)
Your goals should be built on facts, not guesses.
Start the Year Clean & With Help
If you feel overwhelmed, behind, or just off, you don’t have to do this alone.
Our Financial Reset / Cleanup Service will help you:
• Clean up past months
• Fix reporting issues
• Understand your numbers
• Start the year confident and organized
We are here to help!
