The last quarter of the year marks an especially important time for small businesses. From holiday sales to auditing, inventory and organizing – there’s no shortage of work to do. With so many moving parts and the hustle and bustle of the holidays, we’ve created an end-of-year checklist so you can make the most of your time and energy.
Scrutinize inventory
An audit of physical inventory is a must for end-of-year accounting. It’s wise to have an inventory management system to ensure accurate records and to limit the risk of having too much or too little stock. If you discover discrepancies at the end of the year, investigate what might be causing issues and intervene as needed. This could mean updating operating procedures or retraining employees.
Prepare for year-end financial reports
Many businesses clean up their books before the holidays to prepare for year-end financial reports. This includes reconciling accounts receivable and double-checking benefits, bonuses and payroll. After reviewing the books, you’ll want to prepare several documents before the year ends: the balance sheet report, income statement report and cash flow statement report. Keep all this paperwork on hand and ready for taxes and to reference as you make goals for next year. Learn more about putting financial reports together here.
Review licenses and fees for the coming year
Depending on the type of business you own, you may have various licenses to renew for the upcoming year. For example, restaurants need various food handling licenses and therapists and appraisers need a state license to operate in Idaho. Figuring out what licenses you need can be tricky, so learn more about state-level licenses and permits here. At the very least, make sure your business insurance is up to date. Missing important deadlines could mean being non-compliant and incurring costly late fees or even violating laws.
Conduct data audits and electronic backups
Use this time of year to review your data, including vendor information, customer information and employee information. Data is crucial to making sure your business runs smoothly. If you’re not already using Google Cloud or Dropbox consider opening an account to help manage your information. Be sure to back up your computer and cell phone so as not to lose any important client notes.
Create a list of business accomplishments and set goals
After conducting year-end financial reports, compare outcomes to your original goals. The end of the year is a great time to look back on what you did well and what you could improve upon next year. Use financial statements to help assess what to purchase for next year’s inventory and to create sales goals for next year.
Make charitable contributions
Before the end of December remember to make charitable contributions if you want to include them on tax write-offs. Donating to a special cause is a worthwhile way to give back to the community and can also impact your bottom line.
The end of the year is a busy time for small business owners and a crucial time to organize things in preparation for the new year. Mark one of the items off your checklist today and contact an FBICI local agent about small business insurance.
Disclaimer: The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts.
Sources
Guidant Financial
SCORE
Capital One
On Deck
Growth Force
Forbes Advisor
