Running a small business takes a lot of work, but being a small business owner can be rewarding. As the year draws to a close, now is the perfect time to consider what you can do to set your small business up for success in the new year.
Making additional plans before January 1st will help you feel more confident heading into next year. Are you ready for next year? Here's what small business owners should do before the end of the year.
1. Sort out financial issues
As a small business owner, it's a good idea to keep your financial affairs in order throughout the year. Doing this makes it easier to make financial decisions quickly because you have the data you need to make informed choices. But another reason to do this is to save time and minimize stress during the upcoming tax season.
With December 31st quickly approaching, now is the perfect time to get your finances in order. Check your bank statements, company credit card statements, payroll reports, balance sheets, and other documents to make sure you know where everything is. If you're struggling to organize your business' finances, small business accounting software can help.
2. Make necessary year-end business purchases
Now is a great time to consider what purchases could benefit your company over the next year, such as additional software or technology. If you plan on making a business purchase soon, we recommend doing so before the end of the tax year.
If you purchase the items you need before the end of 2023, you may receive a tax credit on eligible business expenses when you prepare and file your 2023 taxes next spring. Remember to record your business expenses so you don't miss out on valuable small business tax credits.
3. Consult an accountant
The end of the year is a great time to talk to your accountant. Get a head start on the upcoming tax season and discuss your year-end financial goals. Your accountant can also advise you on year-end tax planning strategies to reduce your tax liability for the tax year. Be sure to mark your calendars before the busy season begins.
4. Set new financial goals
Whether you own a business or not, it's not uncommon to set goals in the new year. It's not too early to start thinking about what financial goals you want to set for your business in 2024. By outlining your goals now, you'll have more time to create a plan to achieve them. Plus, it will motivate you to start the new year strong. Whether you want to grow your customer base or reach new revenue goals, it's possible and having a plan in place can help.
5. Prepare for hiring and outsourcing needs
If you're considering hiring additional staff or outsourcing some of your daily tasks, now is the time to prepare for those costs. Hiring additional support can help you reach your business goals faster. However, it is essential to prepare for additional business expenses before the new year begins. This gives you time to reconsider your budget and ensure you have enough cash in your business checking account for future expenses.
Wait to make plans for next year
2024 may seem far away, but before we know it, the beginning of another new year will be here. Help your business grow by addressing important year-end financial issues now. For more small business finance tips, check out our small business resources.
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