Believe it or not, it’s never too early to start thinking about year-end items to consider checking off the list for your business. We know the summer is just getting ready to end, but Fall is the perfect time to start getting things in order; you should have plenty of time to get items completed so you’re ready for a smooth year-end and things don’t get out of control and overwhelming. Start Working On Your Year-End Checklist Now!
Use the following checklist as a guide to help you take care of business tasks with ease. How nice would it be to turn your attention to the things that matter the most at the end of this year?!
1. Analyze Cash Flow Statements
Being familiar – and comfortable! – with how your money has been spent throughout the year is extremely important. Cash inflows equal income that is coming into your business, while cash outflows are the expenses you are accumulating. Of course, you always want to make sure your goal is to generate more money than you’re spending. By analyzing your cash flow statement to identify trends, you can start thinking about what you can do to improve your cash flow. The faster you identify any issues, the faster they can be fixed.
2. Implement Tax-Saving Strategies
If you want to reduce your tax bill, it’s time to start thinking about the tax deductions and credit opportunities you can utilize before the year ends. You may find expenses and investments that you can deduct, which will ultimately reduce how much you owe on your tax return. Some common deductions for small business are:
- General business expenses
- Legal services
- Advertising
- Rent and insurance
- Employee salaries and benefits
You will also want to see if there are any small business tax credits that you may qualify for, such as Investment Credits, Work Opportunity Credits, as well as a host of others. Consult your tax pro to begin working on maximizing your savings.
3. Gather Tax Documents
While you won’t be able to gather everything at this time of the year, you can get a jump on many things you will need. These common documents will be needed to submit your business’s taxes, so feel free to get started on getting these items in order today:
- Federal Tax ID number
- Social Security number
- Previous year’s tax returns
- Bank account and credit card statements
- Accounting journals and ledgers
- Financial statements
- Invoices
- Receipts for business expenses
- Employee and non-employee tax forms
Make sure you keep all of this documentation stored in a safe place, all together, to ensure you make it as easy as possible on yourself when the year closes!
4. Evaluate File Naming Conventions
Do you currently have a company-wide file naming system? You may want to consider implementing one, or at the very least, doing some research to see if it would benefit your business. This can be especially important for businesses that share servers that are used by several employees. By making sure everyone follows the same naming conventions, your files will stay organized and will be easy to access for anyone. It also will help to keep things manageable as your business grows. Changing file names now so you’re not stuck searching for something in the middle of year-end close will save you tons of time down the road!
5. Review Licenses and Renewal Fees
Do you keep track of different licenses and renewals your business must maintain? Many times, these easy tasks fall by the wayside because there is no calendar set up with managing these to-do’s. Do yourself a favor and put a calendar together for things from operating licenses to expiring certifications. You will want to clarify when renewals are due, who handles them, and how much they will cost. Don’t fall out of compliance or incur a costly late fee by missing these items!
6. Update Technology and Software
There is no time like the present to look for areas of upgrades. Tapping into technology may be a big one in order to increase productivity and automate current time-sucking processes.
For example, look into different cloud-based apps for accounting or time-management that may help you to automate repetitive tasks. Things like expense reporting, payroll taxes and data entry could be automated in order to give you back valuable time! It can also give business owners a real-time picture of their business, no matter where you are. If you’re looking for better ways to track your communication, scheduling and compliance, this may be the perfect time to start looking into a helpful solution.
7. Forecast Demand
It’s a great time to start looking into predictions for the next 12 months. By making sure you can accurately forecast demand, it will help you practice better inventory control, keep costs lower and satisfy your customer needs quickly.
You can work to adjust your predictions as the year comes closer to an end, but by having at least some idea of what your demand may be, it will help you get a handle on how much cash you may need and the assets you may carry over the next year.
8. Update Employee Handbooks
It’s always a good idea to regularly see if there are any labor law changes happening and how they may affect your business. This would also be a good time to make sure that your employee handbook reflects any new rules or policies that your business implemented this year. Are you anticipating different benefits, wages, or other items that may affect your employees in the coming year? Now is the time to prepare your team by adding these items to the handbook. Make sure everyone is on the same page and understands what they are entitled to. Don’t even have an employee handbook? This is the year to get it started!
Preparation is key. Take a peek at additional checklists for Year-End Tasks for Business Owners, as well as Year-End Tax Prep Tips to Consider with your CPA that Knecht Business Solutions recommended in the past! Reach out and Contact Us if you have any questions or need help supporting your business. We’ve got you covered!