3 Simple Tools to Meet Your 2022 Finance Goals

A new year finds many of us with the motivation to take stock, buckle down, and make improvements in our lives. Getting your financial fitness in check this year should be at the top of your resolutions list. 

We all want a big, fat piggy bank to crack open when faced with challenges and opportunities. But, it is often the self-discipline some of us lack that is necessary to get us there. What are some of your 2022 financial goals? We asked our team to give you their best suggestions for a better money year. 

Here are our top three 2022 finance goals and how you can meet them.

1) Keep business and personal financial records separate.

Many first-time business owners make the mistake of not separating their business and personal finance accounts. From the very beginning, they end up hurting their bottom line. Save yourself the headache and potential heartache by setting up for success from the get-go. 

But, why?

Well, one of the biggest reasons to separate business and personal finances is for tax purposes. 

It is of extreme importance that your business and personal tax records support the income, deductions, and credits claimed on returns. Therefore, taxpayers must keep such records in the event the IRS inquires about a return or amended return. Making sure these remain updated and secure can make a huge impact, especially if you are to be subject to an audit.

Not to mention the tax deductions you could be missing out on. As a business owner, you could and should deduct business-related expenses like travel and supplies. To claim these deductions, you must have proper supporting documentation.

Need help separating your business and personal accounts? 

Tools: We like Xero and QuickBooks Online for business accounting. We use both and are happy to help out with implementation. They also work well in tracking your personal information. As far as personal tax documents, we also use TaxCaddy to collect these.

2) Keep records up-to-date and organized.

This is a preventative action to keep you in the best financial shape possible and avoid common pitfalls down the line. 

Business AND personal recordkeeping?! What a hassle.

Tools: We find that frequent, even daily, recording of transactions is best. Use programs like Xero and QBO. Make it a habit to log into your accounting system daily, tracking either business or personal transactions. That way, end-of-month financials are complete and accurate.

Also important is keeping documentation for deductions. We like paper files but are finding that many can benefit from Cloud storage solutions. Solutions offered by Xero and QBO can safely store bills, documents, and files.

3) Set a debt retirement goal. (If no debt, then a savings/investing goal)

What is the status of your debt retirement? Do you have a plan? If not, make 2022 your year to discuss your options with your financial advisor. (shameless plug here) And get started planning a safer financial future. 

What is debt retirement?

The act of paying off debt completely, so that it no longer exists and you don’t have to be haunted by incurring fees again.

Getting out of debt is the biggest step toward bigger savings. Once the debt is off your shoulders (and wallet), you can truly make a big impact on your savings accounts. 

Repayment options can be tricky and the more firm you are with your plan the stronger your finances will be. Check out our article on reducing debt here for more details on how you can be done for good! 

Tools: We do not like to use the word “budget”, because it is deemed to be a license to spend. We prefer "forecasts." Forecast your spending and set up an account named “LastName’s Future” in either your business and/or personal books. Then, write yourself a check/or transfer, at the beginning of each month. This is a savings plan, a habit, and it is recorded so you can see what you are doing each month - making progress toward a goal.

Make 2022 Your Year

What are your 2022 financial goals? Make sure to share your thoughts with us in the comments. 

No matter what your needs are, planning for the future is important. Our Holden Moss CPA financial planners can help you build a realistic picture of your finances, your goals, and what you might be overlooking. Get a head start by filling out your own personal finance scorecard. 

Reach out to us at Holden Moss Knott Clark & Copley P.A. to start meeting your aspirations. If you would like more information about your taxes or other financial strategies, give us a call for a no-risk tax discovery session. Call (919) 556-6216 or contact us via email at admin@holdenmoss.com. We look forward to working with you.

*This entry was written with contributions from Michael Feldbusch, Steve Moss, and Caitlin Billings.