The year is nearly done and we hope that it has been a successful one for your company and that you are excited about 2019. To prepare for the new year ahead, there are a few must-dos you need to look at that will ensure you don’t overlook anything and keep you and your company on track in the upcoming year.
Take Account of Your Accounts
Make sure to follow up on all outstanding accounts. If you have many accounts payable that are overdue by 90 days or more, consider hiring a collection agency to help. Write off bad debt and then close your books for the year.
Make sure that all expenses are entered into your accounting system and that things are recorded and classified properly to avoid any possible upsets in the next financial year.
Stay Up to Date on Your Tax Records
For sole proprietors and simple partnership businesses, the biggest benefit of staying up to date on tax records is that you know where you stand financially. You can make the maximum contributions to ensure you qualify for the maximum allowable tax deductions in areas such as retirement funds and charities. Accurate financial statements guarantee preparedness when compiling your tax returns for the next tax season.
There are four areas of review you should look at within your company at the end of every year.
Firstly, you would need to review your company’s performance. This means assessing how your company did with regards to revenue, gross margin and profit, maintenance of expenses as well as the strategies your company has used internally over the course of this past year. It is important to review such strategies as it equips you for the upcoming year and its challenges.
Make sure to focus on what goals you had that went further than just financial performance. Did you achieve everything on your company goal list? Did the company expand? Did you launch a new product? If not, what can you change to make sure 2019 is more successful?
Second, you would need to review the company’s external relationships. Often, your company will establish relationships with vendors, partners and/or customers, the end of the year is ideal to review these relationships that are vital to your success. But don’t forget that your vendors, partners and/or customers may be doing the same and you need to establish if the relationship you have with them is beneficial, not only to you, but to them as well. Business is only continuous if the relationship is mutually beneficial.
Thirdly, the end of the year is often used to review employee performance. Yes, we know, how can you only assess performance once a year?! Well, we feel strongly that employee performance reviews should be done more frequently, however, it is appropriate to assess performance at the end of the year, rather than at the beginning. You should measure their accomplishments against their goals to accurately review their performance.
Finally, you’ll want to take a step back and review your own performance. How did you do with regards to your personal and business goals this year? How will you take your personal performance to the next level in the new year? Should you hire a business coach? Have you completed the training you signed up for at the beginning of the year? This review will help you better yourself for your company in the new year and help you establish a plan for success in 2019.
With all of this in mind, remember you can contact The Finance Team which will provide you with a part time or interim Financial Manager that can assist you with the year end rush to keep your house in order. We hope our tips and tricks will benefit you, your employees, your clients and your company in 2019!