As we draw near to the end of 2020, it’s time to wrap up some loose ends and start preparing for 2021.
Having an end-of-year financial plan will allow you to go into the new year with confidence in your financials and your business.
Here are 4 steps to put on your end-of-year financial checklist so that you can win at business!
1. Get Your Financial Books Organized
Books are difficult to organize if they have been unorganized all year long. However, it is crucial that financial books are organized and easy to read so that as year-end reports come in, they can be interpreted easily and quickly based on accurate numbers.
If the books aren’t organized already, create a system as you organize that can be implemented in the new year. A plan will save you hours in the long run! If you don’t want to be responsible for the organization, consider outsourcing the accounting to a financial professional.
2. Determine Where You’re At
Now that the books are organized, there needs to be some examination further into your business as the year comes to a close.
First, the business’s finances. You want to analyze these before determining what adjustments (if any) need to be made in the new year. Use a balance sheet or income statement to help guide your decisions regarding the business.
Second, what are the company’s goals? Evaluate these based on the previous years financial goals and results. Was the business successful according to those goals or do fiscal changes need to be made in the new year?
Lastly, tax preparation! Thorough tax research could potentially save the business thousands of dollars in income tax. Slow down and determine what tax strategy is best for you and your business. Consult with a tax professional if you want to look into new strategies that could improve your company’s financial performance.
3. Plan Ahead!
Plan ahead for next year’s financial goals. Sit down with your financial team and set achievable goals that help the business accomplish something. Each year your financial goals should be growing and expanding. Prepare an action plan and implement it!
4. Prepare Tax Documentation
Taxes can become frustrating and confusing to someone without financial literacy. If you are dreading tax season, it might be time to find a tax professional and send them the necessary documentation to complete your tax forms. The right bookkeeper can potentially save your company thousands of dollars.
At Fidelis Tax and Accounting we want to see you win at business! If you have any questions about your end-of-year financials, reach out so we can set up a consultation. We are here to assist and partner with you to meet your tax and accounting needs!
P: (443) 760-4001
Contact Form: https://www.fidelistaxandaccounting.com/contact