The end of the year is the perfect time to sit down and review your bookkeeping and finances. The idea of a fresh start for the New Year is exciting, but you can’t move forward without knowing where you currently stand. There are many items to review at year-end, but below are just a few big ones to consider before the ball drops marking the New Year!
Reconcile your accounts for the year and then review your current cash flow. Are things tight or are you comfortable with the current inflow and outflow of money? Depending on where you stand, you will need to adapt accordingly. This might mean analyzing reports to see where you can cut back expenses or finding alternative options that cost less money. To move forward confidently, you need to establish a plan for healthy cash flow.
Did you accomplish what you wanted to this year? Reflect on your goals, the steps you took to reach them, and the outcome. If you’re not there yet, how will you get there? What do you want to accomplish this coming year? Take some time to give this some thought and then create a sound game plan for achieving your goals.
Check out the items you currently have on-hand. What do you need to order to start the New Year fully stocked? Look at detailed reports to see which items sold well, which didn’t, and then consider options moving forward - should you offer new products/services? Should you cut the products/service not performing up to standard? Offering the right products and services a huge part of owning a business.
Figure out the steps you need to take to be prepared for tax season. Once the New Year hits, important documents will start being dispersed. Work with your bookkeeper to ensure your books are accurate, up-to-date, and entirely filled out. Missing information and mistakes are big red flags for the IRS.
A/R and A/P.
Review your Accounts Payable and Accounts Receivable. Do you have any outstanding bills to pay? Are there any outstanding invoices that need to be handled before year-end? Try to wrap a bow on these outstanding payments so you can start the New Year “fresh.”
Be sure to work with your bookkeeper on reviewing these items and creating plans for moving forward. They can be an essential tool to the growth of your business!