The end of the year is a very busy time for business owners, as this is when peak season sales and orders begin to come in quite regularly. It is also the time when you have to file taxes, something that always happens the end of the year. There will always be new challenges for you and your business – are you ready for them? Have you set your 2018 business goals yet?
This article will present a year-ender checklist which small-business owners can use to improve their business:
Evaluate the status of your business.
Do you actually know where your business stands by year’s end? Your financial records will reveal what is actually happening, providing you with the present standing of your company, and will allow you to make objective conclusions.
Your income statement, cash flow statements, and balance sheets are the three basic documents that you will need to look at. Your income statement will help you gauge the profitability and losses of your business. Cash flow statements will show you what your investments are, the operating costs, and any loans that you have to repay. Your balance sheets will show the liabilities, equity, and the assets that your company possesses.
Goals for the new year.
It is important to always look back and see if your goals for your business were actually achieved. Look at the steps you take in, and see if there is room for improvement, and any adjustments that would help you become more profitable. You can improve your business the following year by doing this, making the next year even more profitable for you and your company.
The advantages of tax privileges.
To make the most out of your tax privileges, starting as early as the very first month, you need to plan a course of action using this information. There are many tax credits and tax deductions that business owners can enjoy on qualified expenses, allowing you to maximize your benefits in the long run.
Always organize your financial documents.
One of the most time-consuming aspects of running a business is sifting through your balance sheets and the pile of receipts that you have, a project that can be excruciating if you are not as organized as you should be. Is there a bookkeeper or accountant that can assist you? Hiring professional help is a very good idea when you are just starting out with new employees in trying to grow your business.
Having a year-ender checklist is something that every business should have. It is important to know the advantages of your tax privileges, your goals for the coming year, and also evaluate the state of your business so that you know where you are now, and where you need to be. By understanding your income statement, cash flow statements, and your balance sheets, you will have a cursory overview of exactly where your business is today. By setting the proper goals, you can also achieve more profitable objectives in the coming year.