Year-End Focus for Business Owners

As the year ends in just less than a month, almost all business owners may have to give off a sigh whenever they will look back at the past months that shook the economy. As the new normal was abruptly introduced during quarantine, we have to admit that no one was prepared—especially businesses. With all the challenges that occurred this 2020, we might have to rewrite our typical business plans into new normal plans!

Achievements Overview

  Have a list of your business’ achievements this year. Take a look at what you have ticked off your bucket list and also take note of the unaccomplished ones. Do not fret over the goals you have not yet achieved; incorporate them into your next year’s to-do instead! 

  Do not also forget to evaluate and give encouragements to your employees, too. Many have been laid off due to the economic recession, and it just takes a little compassion to reward them with their service after all.

Review Financial Standing

  Check your revenue if it’s growing. Are your expenses flat? Remember that the increase in revenue is not always directly proportional to your increase in expenses. If your revenue grew by 4%, then you wouldn’t want your expenses to go beyond 4%. Your debt ratios should also be low while keeping your profitability ratio high. 

  Also make sure that the time, expenses, and production efforts are compensated accordingly with your pricing. Have your assets, liabilities, and equities reflected in your balance sheet.  If you’re having a hard time doing so, seek help from a tax professional!

Don’t Skip Tax Planning!

  Who wants tax planning at the last-minute? To avoid the hassle of consolidating all your tax reports in the year-end holidays, have an allotted time monthly to complete your financial reports, books, and records. This way, you’ll be eating your Christmas ham without stressing over your unfinished ‘business’.

Check Business Health

  The year-end is a good time to assess one’s health, especially of a company. Your financial statements will assist you to analyze the flow of sales, cash, gains, and expenses. To build a strategy for next year, integrate the solutions for this year’s loss to mitigate the problems that may occur.

Don’t Wait Too Much 

  Your tax burden can be leveraged by deferring taxes. To allow more flexibility to pay taxes on company sales, postpone payment due dates until after January 1. Do not delay earnings if you have an urgent need for cash. The tax advantages of deferring taxes are not worth the late payments.

Back-up Files

  Humans are not the only ones susceptible to viruses—files, too! Unfortunately, files cannot be vaccinated, and anti-virus applications do not always guarantee their safety from malware. Using a stable platform like the Cloud, Google Drive, or an external hard drive, back up your company files. Always keep a digital copy of essential records and archives, such as contracts or agreements.

These are just some of the things you need to be focusing on as you wrap up your year in business. Use this time to assess what you’ve accomplished this year despite the pandemic and create a plan for the coming year to bounce back.