Assessing your business’s bookkeeping and financial transactions is imperative to start the new year prepared and aware of the business’s financial situation. There are a few things to emphasize at the end of the year that bear more importance then what usually needs to be accomplished. Re-reviewing your current business plan, ensuring accurate records and budgeting, as well as considering potential tax breaks.
Reviewing Your Business Plan
Your business plan should be analyzed and edited every year as your situation changes frequently. Businesses often come across several unforeseen problems that often go unnoticed without proper year-end analysis. You can look at many resources to guide you on how to properly go about reviewing your business plan.
If your plan isn’t reflective with your current balance sheet and yearly income statements then it is a red flag that something is being overlooked. It is essentially a tool to guide you through the fiscal year and make sure you are hitting monthly goals and progressing the business.
If you are struggling with exactly how to structure your business plan or better organize your bookkeeping… contact us and we will help you get on track to start growing your business.
Ensuring accurate records and budgeting
Without proper employee filings or properly organized books, your business could slip into a state of disarray. You must assess the previous year’s budgeting and see what needs to be changed to get in line with your goals for the new year. This also helps you figure out how much cash you have separate from all the account receivables that can help you expand your business.
This list has the majority of imperative financial statements that every small business should have.
It’s important to document any and all expenses, but what is even more important is making sure that certain expenses are separated between personal (mobile phone bill) expenses and business. Certain expenses can be deducted like storage and labor cost if you manufacture or sell a product.
You must find a few ways to avoid paying unnecessary taxes when able to. For tax help, talk to one of our experts and let us help you get organized and on track.