Getting Your Business Financially Ready for Next Year

As the year draws to a close, it is crucial to the success of your business to prepare financially for the upcoming year. The holiday season is one of the busiest times of the year for many businesses, which can easily lead to essential year-end tasks being overlooked or put off. Financial consulting can ensure that you complete those important to-dos and avoid the hassle of extra, unnecessary work or even a potentially undue tax burden. Here are a few ways to make sure your business is financially ready for next year.

Run Year-End Reports

By running three main year-end financial statements, you can quickly get an idea of how successful your business was this year, as well as get a picture of its overall financial situation. A P&L (profit and loss) statement will outline the accumulated income and expenses for the past year. A balance sheet lists what is still owed to investors, along with liabilities and assets. A cash-flow statement shows how much cash entered and left your business throughout the year, indicating how well funds were managed. A CPA can assist you through financial consulting by analyzing these reports to determine the health of your business and plan for the upcoming year.

Create a Plan for the Upcoming Year

After analyzing the year-end reports for your business, create a financial plan for this next year. If your business was less profitable than expected, reevaluate your budget, and adjust costs and expenses where possible. If, instead, profits were higher than projected, consider making investments with the additional revenue, or purchasing needed tax-deductible items or equipment before the end of the year to avoid jumping into a higher tax bracket.

Assemble and Prepare Tax Documents

Most importantly, gather all necessary tax documents. Collect all financial statements, payroll and business expense information, and any other records that may need review. Determine which tax forms are needed for your employees and prepare to send them out by the end of January. When preparing to file taxes in the new year, a CPA can ensure that everything is documented and filed correctly in order to maximize deductions where possible

Financial consulting can significantly ease the work and stress that come with getting your business successfully prepared financially for the new year. Larry Turner, CPA, has been providing businesses with expert financial accounting and tax preparation services in Gilbert for 25 years. Contact us today for financial consulting to get ready for the new year.