The end of the year is the perfect time to reflect on everything you’ve achieved in the past 12 months. It’s also an opportunity to complete the tasks you need to start your business off on the right foot and make the next year even more successful. This year-end checklist will help your small business start the new year strong.
1. Get organized
It’s always a good business practice to stay organized, but year-end offers a great opportunity to catch up on any remaining tasks. File all your receipts and invoices where you and your accountant can easily find what you need. If this task sounds daunting, consider a new year-end system to help you digitize and automate your finances. Tax season is just around the corner – don’t let it catch you by surprise.
2. Close any outstanding accounts
If December 31 is also the end of your fiscal year, follow up on any outstanding balances. Make sure any checks you’ve written have been cashed by the recipient. Pay any invoices you still owe to partners and contractors. You want those books to be fresh and ready for a profitable new yer, without any outstanding year-end balances to address.
3. Take inventory
If your business has physical inventory, year-end is the time to see what you have on hand. The holidays are a hectic time for retailers, so knowing what you have in stock is critical to your success. You also need to know how much of your capital is currently tied up in inventory.
4. Evaluate your business’ performance
Year-end is a great time to reflect on how well your business is doing. Review your profit and loss statements to see how your business has performed. Did you meet the goals you set this time last year? Consider what changes you can make to boost future profitability.
5. Refresh your business plan
Now that you’ve taken a hard look at the past year’s financials, use this information to refresh your business plan. What trends would you like to replicate in the next year? What gaps can you address? Update your business plan to reflect where you are today and where you’d like to be next year when you review year-end results.
6. Set your business resolutions
With year-end around the corner, it’s a great time to set goals and plan for your future. Take time to consider how you’d like to see your business grow over the next year. What SMART goals can you set for your business? What would you like to change in the coming year? Outline what you’ll need to do financially in order to achieve these goals.
7. Secure funding
Now that you know what you want to achieve in the coming months, you have a better idea what you’ll need to get there. Fortunately, funding those goals doesn’t mean saving until well into next year. You can obtain funding from a self-directed 401(k) plan – also called a 401(k) Rollover or ROBS Funding Plan – in as little as a few weeks, allowing you to start working towards those resolutions with the funding you need.
To learn more about how your small business can prepare financially for the coming year, contact Tenet Financial Group today.