End-of-Year Checklist for Business Owners
The fourth quarter is in full swing and will be over before you know it! This time of the year usually has people thinking about wrapping presents. However, for business owners, it’s prime for wrapping up any tasks you need to finish and preparing for the coming year.
As you analyze your company's performance over the past year, check these tasks off your to-do list to ensure you’re financially stable and ready to take on the new year.
Organize & Review Expense Records
Gather all financial and other essential documents required to analyze your business standing. Review this information to understand how your business performed in the past year and project its performance for the upcoming year.
You can make this process even easier by organizing your documents by category. Whether you choose to manage your files physically or electronically, you can create folders for financial records, tax statements, receipts, licenses & certifications, and any other relevant categories.
Assess Inventory
Perform an inventory assessment to determine how much of your company’s capital is tied up in inventory. In other words, how much of your business funds are sitting on the shelves as stock, and how much is liquid and readily accessible to use for other expenses?
You can also take inventory of your office equipment and supplies to identify which items you’ll need to repurchase soon. This step will help you budget accordingly for the coming year or use any surplus funds to purchase needed items now.
Review Liabilities
Analyze your company’s current and long-term debts and liabilities, such as business loans, commercial credit cards, vendor or supplier contracts, and other accounts payable. Finding ways to manage debt efficiently will help keep your company in a solid financial position.
Refinancing business loans or transferring high-interest credit card balances to a credit union might offer substantial savings and provide more flexible repayment options.
Analyze Profitability
Study your company’s Profit & Loss (P&L) statements to analyze profitability. These statements show your business income and expenses. Analyzing these records can allow you to identify trends in both areas and make any necessary adjustments for the coming year. For example, you might overspend in a particular area and can commit to cutting costs next year.
With expenses continuing to remain high, consider using previous months’ expenses to create a more accurate budget for next year. Remember, it’s always wise to overestimate costs and not need the funds rather than underestimate and borrow to make ends meet.
Evaluate & Update Your Business Plan
Reviewing your financial reports from the past year and crunching the numbers, you may notice recurring patterns and trends. If you experienced a season with exceptional profits, you could aim to replicate it in the upcoming year. Conversely, if you identified a particular period with lower revenue, you could develop strategies to combat this cycle in the future. Use the data from current and previous years to help you outline your plan for the new year.
Set SMART Goals for the New Year
Setting specific, measurable, achievable, relevant, and time-bound (SMART) goals helps drive business growth and keeps teams focused. By defining objectives in critical areas like revenue and client acquisition, along with measurable outcomes, you can track progress and make adjustments as needed. Breaking goals into quarterly milestones provides a timeline that keeps you and your team on course throughout the year.
Evaluate Marketing Strategies
Reviewing each marketing channel's performance over the past year helps you identify which campaigns delivered the best return on investment. Use this data to reallocate your marketing budget toward high-performing platforms and consider a new content calendar to stay consistent with engagement in the coming year. Calculating customer acquisition costs (CAC) can also guide you in optimizing your strategies for more cost-effective results.
Prepare Tax Documents
Getting a head start on tax season is always a good idea! While gathering other business documents for review, you can also collect any additional documents and information you know you’ll need for tax time. You can start preparing for the upcoming tax season by organizing your receipts and other necessary documents when the time comes to file.
CAMPUS Can Help!
Completing this end-of-year checklist can help set your business up for success in the coming year and beyond. You can gain valuable insights into your business's performance and set attainable goals for the future.
If you want to learn more about our financial products and services tailored to small businesses, we're ready to help. Please stop by any of our convenient CAMPUS Service Center locations, call 800-367-6440 or visit our website to schedule an appointment.
By CAMPUS USA at 31 Oct 2024, 08:00 AM