A Year-End Financial Checklist for Small Business Owners
December 30, 2016
As we say goodbye to 2016, make sure your small business is ready for the New Year. This checklist will give you 13 items to finalize your financial plan.
- Compare your current monthly budget with previous budgets for the past year. Take a look at how your business performed and any areas for improvement in the New Year.
- Determine what your business will need to do to achieve your financial goals. Create a baseline budget to follow, along with projected growth to help you stay on track.
- Develop a forecast of cash flow for the long term to help you identify the cash needs of the business. You will be able to determine if you need financing in the New Year and if you will have excess cash to support growth.
- Review your short-term 13-week forecast for the balance of this year to find tax liabilities that can be set aside for next year.
- Update your year-end forecast for tax planning. Determine if you have enough cash reserves for projected tax liabilities and year-end strategies to minimize your tax liability.
- Stay up-to-date on your bookkeeping and reconciliation of accounts throughout the year so all your data is current.
- Prepare for 1099’s due in January. Begin to organize your W-9’s now and avoid being rushed come January.
- Review your accounting infrastructure to make sure your business is running efficiently and you have the right people in place. As the business owner, tasks such as bookkeeping and other financial tasks can be assigned to a professional to help you focus on the growth of the business.
- Determine if you will offer a bonus or other reward to your staff, which can impact the profits you report and overall taxes.
- Review your current staff inventory and staffing need for the New Year. If you need additional personnel, make sure you’ve budgeted for those additions.
- This is a great time to reflect on your business’ accomplishments and overall performance of your employees. Your employees will appreciate the recognition.
- Update your inventory count and accuracy. If you keep materials or products in a warehouse, now will be a good time to examine your inventory and correct any discrepancies.
- Check your website for any new services or products you plan to offer next year. If you plan to move or expand, be sure to update your contact information.