How do you start your fiscal year off on the right foot?
<p>The beginning of the year marks an ideal opportunity to start off on the right foot, especially when it comes to finances. For self-employed workers, rigorous management in January can make all the difference. Less stress as tax season approaches, better organization and a clear overview to achieve your financial goals – that's what you can accomplish by making a plan now. We offer simple and practical tips to help you approach your new fiscal year with confidence, whether it's by looking at your successes or adopting tools to simplify your accounting.</p>
<h2>What is a fiscal year</h2>
<p>The fiscal year is the 12-month period that a company chooses to compile its revenue and expenses. Many self-employed workers opt for a fiscal year from January 1 to December 31, but it is possible that you have chosen another period for yours. Whichever one you have selected, it must be the same for both your federal and provincial returns.</p>
<p>This period is crucial for structuring your activities and meeting your tax obligations. By understanding your income and expense stream on an annual basis, you get a clear view of your financial performance, making it easier to plan and adjust for the future.</p>
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<h2>Do a review of the previous year</h2>
<p>The arrival of the new year is the perfect time to do a review of your activities. Is your business healthy and thriving? What was your income in 2024? And where do your expenses come from? If you use Momenteo, the Income Statement report will be of great help. By looking at an entire year, you'll be able to determine your busiest months as well as your downtime. If they are the same year after year, you will manage fluctuations in your workload with less stress and you will know the best time to take your vacation without penalizing your income.</p>
<p>Doing this assessment allows you to evaluate not only your financial results, but also your personal satisfaction as a self-employed worker. Which projects generated the best revenue? Which ones have allowed you to build long-term collaborations?</p>
<p>At the same time, identify the contracts that have been more complex or energy intensive. Was the effort worth it? By taking the time to assess, you will have an overview of your finances and the satisfaction you get from your professional activities. An assessment that goes beyond the numbers to include your well-being is key to knowing if you're still on track.</p>
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<h2>Set your financial goals for the year ahead</h2>
<p>Now that you've done an overview of your 2024 finances, you can set realistic and motivating goals for 2025.</p>
<p>Want to reduce your business expenses? Your assessment will allow you to quickly identify those that are essential to the proper functioning of your work and the improvement of your skills, as well as those that can be eliminated. Want to increase your profits? By analyzing your monthly income from the previous year, you can set a realistic goal for 2025.</p>
<p>Also consider your personal resolutions and plans. Are you planning a trip with friends, want to expand the family, or renovate your kitchen? These projects come at a cost, and including them in your planning will help you determine the revenue needed to complete them without financial stress.</p>
<p>Don't forget your tax obligations when setting your goals! Set aside a percentage of your income from the outset to cover your taxes. This will save you a lot of worry and help you manage your finances with peace of mind.</p>
<p>If you use Momenteo, you will be able to easily track your progress. The Expenses and Income reports give you a clear, real-time view of your company's financial situation.</p>
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<h2>Find an accountant</h2>
<p>If you don't already have one, think about <a href="https://fr.momenteo.com/blogue/comment-choisir-le-comptable-pour-ton-entreprise">finding an accountant</a> at the beginning of the year. As each field has its own particularities, it is important to work with a specialist who knows your professional and personal reality well. By planning ahead, you'll have access to a wider range of professionals and can choose the one that best suits your needs. As well, if the match is not the right one, you will still have time to change accountants before the tax season.</p>
<p>Make sure you have everything on hand for taxes</p>
<p>Yes, you still have a few months to prepare, but you'll have more peace of mind if you start now. If you're using Momenteo for your accounting, make sure you've entered all your expenses in the correct categories and take a look at your invoices to confirm that everything is up to date.</p>
<p>For efficient filing of your invoices and receipts, group them by month or expense type. Scan and save them in well-identified folders on your computer or in the cloud to avoid losing them.</p>
<p>Also remember to record the mileage of your car on January 1 or at the beginning of your fiscal year to find out the distance traveled each year. This information is essential if you use your vehicle for business trips, as it allows you to calculate the deductible proportion of your car expenses. You can easily track your <a href="https://fr.momenteo.com/blogue/travailleur-autonome-devezvous-facturer-vos-deplacements">mileage</a> in Momenteo.</p>
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<h2>Check if it is beneficial for you to sign up for the quick accounting method</h2>
<p>The <a href="https://fr.momenteo.com/blogue/la-methode-de-comptabilite-rapide-expliquee">quick accounting method</a> allows self-employed individuals, sole proprietorships or incorporated businesses to refund only a portion of the taxes charged to your customers. Great, right? This method can be very advantageous if you have few expenses related to your activities. You can find all the eligibility criteria on the <a href="https://www.revenuquebec.ca/fr/entreprises/taxes/tpstvh-et-tvq/credit-de-taxe-sur-les-intrants-et-remboursement-de-la-taxe-sur-les-intrants/methode-simplifiee-de-calcul-des-cti-et-des-rti/">Revenu Québec</a> website. If your fiscal year is a calendar year, you have until April 1 of each year to change how your taxes are filed, so be sure to make the changes quickly.</p>
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<p>By following these steps, you'll start your financial year off on the right foot, with a clear and organized view of your finances. Simplify your process with Momenteo, your ally for efficient and hassle-free bookkeeping!</p>
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<p>Roxane has always written and dreamed of making a living from her writing. Now a web editor, proofreader and author, we can say that it’s mission accomplished!</p>