Year End Planning for Small Businesses

The end of year is an important time for small businesses. It is important because it is a great time to review your business operations and performance.  Not only to prepare for taxes but also make plans for next year.  So, what should you do and where should you start?

You should start by reviewing your financial statements for accuracy.  This gives you the information you need to review where your business is so you can make plans on where to go.  To do this you must first:

• Make sure all income and expenses are recorded by reconciling all your bank accounts, credit card accounts, and any loans accounts.
• Record any business expenses that you paid for personally.
• Record any new assets (furniture, equipment) and liabilities (credit cards, loans).

Once you have this information, review your goals, business strategy, and budget, then analyze your financial statements and other metrics collected.  Did you achieve your goals for the current year?  Did your business strategy help you achieve your goals this year? Do you need to adjust your strategies to move your business forward?  Did you stay close to your budget, or do you need to evaluate your expenditures?  The answers to these questions will give you the information that you need to plan for next year.

Where do you want your business to be at the end of 2025?  Are you looking to expand to a new location or buy that new piece of equipment?  Do you have the cash to purchase outright or capital and income to secure and carry the loan payment?  These are just a few more questions to ask as you review your financial statements and write down your goals. 

Now you have your goals, you need a plan.  Adjust your business strategy and budget to advance your business to your new goals.  It could be you are ready to jump in and go to the bank and get that new piece of equipment or just budgeting to set aside money each month until you can purchase it out right.  It could be you need to reconnect with old clients and vendors or rework your advertising.  Or it could be as simple as you need to review your expenditures and reduce your spending on unnecessary items. 

You wouldn’t drive your car to an unknown destination without a map, so don’t drive your business in a new direction without proper directions and plans.  Whether your destination is big or small, draw out your journey and review it throughout the year for any necessary adjustments or detours.  And never be afraid to reach out to your financial specialist for help at the end of the year or throughout the year.  They are available to help you navigate your business road map to meet your goals.

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