This year end checklist for small businesses will help you get your income tax in order and your business planning off to a good start.
1. Get your financial books in order.
Doing your income tax may be easier for some more than others. In most cases, entrepreneurs hire a bookkeeper to keep it all in order. Most business owners consider record keeping to be tedious but good not only to makes things easier, but also to give you real stress relief at tax time. Either way, getting your financial books in order has to be done before anything else.
2. Determine you’re position.
The next step is to figure out where your business stands. There are two areas you need to look over.
Finances – Examine your financial documents.
- Balance Sheet – Shows your businesses assets, liabilities and equity.
- Income Statement – Itemizes your revenue expenses, resulting in a profit or loss.
- Cash Flow Statement – Reconciles your opening cash with your closing cash for a period of time, to show where your money has gone.
Goals – Evaluate your goals from the past year.
Pull out your business plan and review last year’s goals. Did your business accomplish what you set out to do? Make notes on your thoughts about your successful accomplishment of your goals, or lack of. This will come in handy when you are planning for the new year.
3. Plan for the years to come.
Now that you know where your business stands, set goals for the year to come. Planning often gets pushed aside because you’re hard-pressed for time, but it doesn’t have to be time consuming. Set goals that are relevant and achievable. Prepare an action plan and start implementing your plan.
4. Get your tax documents prepared.
Whether you prepare them yourself or turn them over to an accountant, this is the last step for your small business year end checklist.
Hopefully this year end checklist has you inspired and has made your business planning easier.