If you planned ahead you already have a jump start on getting everything right where it should be to make your accountant happy. Good for you but, if you’re like most small business owners this time of the year seems to pop up out of nowhere.
If you have no idea where to start I have a made a checklist for you:
Get your books in order – If you have a bookkeeper doing your financials make sure to schedule a meeting to discuss where you are at and if any changes need to be made now.
Know what position you are in by looking at and understanding your financial statements:
The Balance Sheet – Is your businesses summary of how it is doing financially at a particular point in time. It shows all your business’s assets, liabilities and equity.
The Income Statement – See at a glance whether or not your business is profitable at a particular point in time by itemizing your revenue and expenses, resulting in a profit or loss.
The Cash Flow Statement – This document provides aggregate data regarding all cash inflows a company receives from both its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given quarter.
- Cash flow from operating activities – such as revenues and expenses
- Cash flow from investing activities – such as assets purchased and assets sold
- Cash flow from financial activities – such as loans and loan repayments
Evaluate the goals you set for last year. Did you achieve any of the goals you set for your business? If not, why. If your business did not reach it’s goal for this year evaluate whether or not it was attainable and if it was, where you could improve for this new year.
Make sure you know what laws have changed that affect your business. Many businesses will be affected by new health insurance, minimum wage and tax laws. Educate yourself to avoid any trouble. Your accountant is a good place to start.
Get you paperwork together before it turns into a mad-dash. Everyday make it a point to get something collected for tax purposes. This way you wont feel like its consuming you.
Set up your new goals for 2014 and implement your strategies.
Have a great New Year and send us your new year’s resolutions. We would love to hear from you!