Manage Year-end Finances Now for a Stress-Free New Year
The end of the year is often busy personally and professionally. Parties and celebrations. Wrapping up projects and meeting deadlines between holidays. Then, at the beginning of the year, you will be focused on new projects and new opportunities.
Knowing what is coming, one significant piece of advice we have is to prioritize your finances now. Take the time to prepare your small business for everything to come; taxes, budgets, marketing strategy, hiring, growth, and calculated risks.
Your business’s financial information should be properly tracked throughout the year. Details are important and bookkeeping is a meticulous job. But mistakes happen and bad financial habits form. These can harm your business and be a source of unnecessary stress.
Take these steps in the 4th Quarter to get your finances on track and prepare well for next year:
Clean up your books.
Ensure your ledgers are up to date and all transactions are entered accurately.
Fix accounting mistakes.
Confirm that all expenses have been categorized correctly.
Analyze your Accounts Receivable and follow up where needed.
Reconcile all accounts.
Once you have cleaned up your books, you now have accurate information to analyze.
Review your financials.
Expenses
Determine if all expenses are necessary. Is there an opportunity for reduction or consolidation?
Check recurring subscriptions. Are they still useful and needed?
Do you anticipate any large expenses in the 4th quarter?
Do you need to price-shop other suppliers?
Revenue
What do you expect to bring in during the 4th quarter?
Are you on track to make more money than last year?
Should you increase any of your prices for the next year?
Tax estimations
Have you paid or set aside an accurate amount for your taxes?
Analyze each area of your business
Successes—how will you sustain or propel growth in this area next year?
Underperforming—how can you rectify the situation moving forward or is it time to make a cut and remove this product or service?
Taking the time to analyze and ask yourself the right questions now will set you up well for the new year. Complete financials are necessary to create accurate budgets and informed business strategies. Preparing in advance will also help to avoid tax-time dread and drama.
Do you have an adequate financial team capable of managing the above well? Small business owners often try to do it all, but the reality is you can’t. A statement we hear often is—I know I need help with my financials, but I don’t know what kind of help. This can be confusing and intimidating to someone who doesn’t consider themselves a “numbers person.” Some small businesses need to hire a full or part-time bookkeeper. Others only need to hire a contractor to reconcile the books on a monthly basis and run reports. So, how do you know what type of help you need? A one-hour consultation can provide you with the clarity you need. Give us one hour and we’ll give you a plan with detailed next steps for you to take control of your finances.
Welcome to Joy of Pursuit!
Pursuing your small business goals can be challenging.
Whether you are a company of one or have a team, I can assist you with building the small business of your dreams.
