As a small business owner, you probably have more on your mind right now than just the holidays. Many businesses experience crunch time during December to make sure everything on their end-of-year checklists is crossed off. By taking the time to complete these items by year’s end, you’ll be off to a strong start come January.
Step back and look at the big picture of your business. How did your finances fare this year compared to previous years? To gain an understanding of your financial state, enlist help from your accountant, or accounting department, to create the following reports:
- Profit and loss (P&L) statement, also known as an income statement
- Balance sheet
- Cash flow report
You probably keep a great deal of essential information about your business in a computer system. Regular system backups are ideal to ensure you don’t lose any of that info, and you should prioritize an end-of-year backup to go into January with confidence.
While you’re at it, back up your cell phone to a hard drive. Many folks don’t realize how much essential correspondence they have on their phones until they lose it all.
At the end of the year, look more closely at your various business debts. Perhaps you owe some money to contractors or vendors, or you contacted a small business loan company to take out a loan. Brainstorm ways you can manage your debts more efficiently in the coming year to keep your business credit score in good health.
Take time at the end of the year to conduct thorough performance reviews of all your employees. Identify areas where they can improve and provide end-of-year bonuses as a reward for their hard work and as an incentive to keep it up.
Treat the new year as a fresh chapter in your company’s story. What did you do this year that worked, and how can you continue down that path toward further growth? Were there any roadblocks this year that you’d like to avoid in the future?
Set goals for the long term and short term. Use your business’s financial statements to identify areas where you could gain more growth and profit.
As you wrap up the year, use this small business end-of-year checklist to review your past and plan for your future—make next year your best year yet!
Need additional funding for your business as you enter the new year? Check out Pango Financial’s funding solutions tool and examine the options available to you.