As we inch closer to the end of another year, now is a great time to think about how you’re running your business. Have you been putting things off because you don’t enjoy doing them or you think, “I’ve got plenty of time to get that done”?
In general, people tend to procrastinate about tasks they don’t enjoy performing. Unfortunately, for most business owners, one of the tasks that frequently tops that list is bookkeeping. Without good, up-to-date books and accounting procedures in place, any plans you make for the future will not be accurate.
It’s not too late—now is a great time to reflect, catch up, and plan.Step One: Reflect
Have you reviewed your current and future business plans? Have you thought about what you want your sales to be next year, reviewed your tax strategy, planned for growth, or developed an exit strategy? Do you have a plan in place for the New Year?
Step Two: Catch Up
Before you can plan for the future, you need to get a realistic view of your present. Now is the time to get your books in order. If you’re the one procrastinating, get help. Consider hiring a bookkeeping service. They provide fast, accurate services and actually enjoy the work you’re avoiding. If you already have someone performing these tasks but your information is outdated, it may be time for a change.
Once your books are in order you can shift your attention to the future.
Step Three: Plan
- Sales Plans: once your bookkeeping information is accurate you’ll know where your current sales are and be able to project and plan for where you want them to be in the coming year and beyond.
- Tax Planning Strategies: you must have accurate books in order to sit down with your tax preparer to discuss year-end tax planning.
- Growth Plans: How big do you want to grow? Unless you know your numbers, you won’t have a clear picture of how to plan for growth. Can you hire more people, do you have money in the budget to spend on marketing, do you have a budget?
- Exit Strategy: Most business owners aren’t thinking about selling their business because they’re busy running it. However, if you think in terms of selling your business you will start implementing best practices and procedures so that when the time comes the business will be more valuable.