As the end of the year approaches, right now is a great time to assess the success of your small business this year. Did 2015 play out the way you were hoping? There are still a few months left in the year, which means you still have time to make a few changes if there are annual goals you haven’t met yet.
Here are a few things that you should think about before the year ends:
1. Update Your Records
There is nothing more frustrating than trying to pull together an entire year of financial records right before tax time. Don’t procrastinate your record keeping because you will be causing yourself a big headache later on! If your records have been neglected this year, take the opportunity to get them up to date before the year ends.
2. Implement a Good Financial System
Are your records lagging behind because you don’t have a good program in place to track your business finances? The system is the foundation for success and it is very difficult to assess the financial stability and cash flow of your business without the right system. Finding the best financial tracking system for your line of business can make it easier for you to maintain good records on an ongoing basis.
3. Check Inventory
As you are assessing your financial books, you might also consider inventory levels. Consumers are always looking for holiday sales, which means that you can leverage your current inventory to maximize the year-end profits of the company. Even if your business doesn’t sell physical goods, you can still offer holiday prices on services and digital sales.
4. Income Management
Consider the time of year when income is received and how the income will impact your annual taxes. For example, in some situations it might make sense to delay things so that December payments are received in January instead, which defers some of your 2015 income to 2016. An experienced accountant can help you put together the best strategy for your individual needs.
5. Maximize Deductions
The end of the year can also be a beneficial time to maximize deductions, if there is anything that you need. Don’t spend money for the sake of spending money. But if you are planning a big purchase in the future, then you might consider making the purchase before the end of the year. The end of the year can be a great time to stock up on office supplies or replace old equipment. You might even make vendor payments in advance, in order to manage your cash flow through the end of the year.
Talk with an Experienced Bookkeeper
Working with a bookkeeper is one of the best ways that you can improve the success of your business. A local bookkeeper can help you stay focused on your financial goals and put your business on the fast-track to financial success for the year.