As the new year begins, it’s a perfect time to adopt habits that will set your business up for success. Developing good financial habits early on can help you manage cash flow, reduce stress, and keep your finances in check throughout the year. Here are five habits every business owner should start in January.

1. Review Your Cash Flow Weekly
   Cash flow is the lifeblood of any business, and frequent reviews can help you avoid unexpected shortfalls. Set aside a specific day each week to go over your cash flow statement, which will help you identify any upcoming expenses or potential cash gaps in advance.
2. Track Spending Against Your Budget
   Creating a budget is the first step, but sticking to it is crucial. Make it a habit to compare your actual expenses against your budget regularly. This way, you can spot overspending early and make adjustments as needed to stay on track.
3. Automate Your Payments
   Automation saves time and reduces the risk of missed payments. Consider setting up automatic payments for recurring expenses like rent, utilities, and supplier invoices. Automation also frees you up to focus on other aspects of your business while keeping cash flow smooth.
4. Monitor and Prioritise Debt Repayment
   Paying off debt can improve your financial standing and reduce interest costs. List your current debts and identify those with the highest interest rates. Make it a habit to prioritise repaying these first to save on interest over time, and consider whether any low-interest debts can be paid down more aggressively.
5. Keep Detailed Financial Records
   Good record-keeping is essential for managing expenses, preparing taxes, and applying for loans. Use a system that works for you—whether it’s digital or physical—and make sure it’s kept up to date. Not only will this habit reduce stress at tax time, but it will also give you a better understanding of your business’s financial health.

By adopting these financial habits in January, you’ll be setting your business up for a strong start to the year. Whether you’re looking to improve cash flow, reduce debt, or better manage your budget, these tips can help you achieve your goals. Need guidance in setting up these practices? Reach out to BJT Business Advisors for tailored support.