For most business owners, the new year represents a fresh start. But as the current year draws to a close, it’s important to think through some of your core business processes. Here are some of the most important things to focus on when doing your end-of-year planning.
Collect Documentation Related to ERC Issues
The Employee Retention Credit (ERC) is part of the CARES Act rolled out in 2020. If you received funding through this program, you’ll need to provide documentation indicating how much you received and how you used these funds in your business.
Review Your Tax Bracket
Remember, tax brackets have been updated for 2023, meaning it’s possible your business now fits into a bracket. If that’s the case, you’ll need to adjust your withholdings for the next year.
If you’re struggling with your tax planning, working with a financial team can help with preparation and planning for the following year.
Make Plans for Section 179 Deduction
You could take a Section 179 deduction if you purchased any new vehicles or equipment for your business this year. You’ll need to gather the appropriate documentation to validate this deduction. If you haven’t made these sorts of purchases, consider doing so, as it could help you with your tax situation.
Once again, it can help to consult a qualified financial professional if you’re unsure whether your purchase qualifies.
Check Your Retirement Contributions
Make sure you’ve maxed out your retirement contributions for the year. If not, you still have time to ramp up your contributions before the year closes. Check to see what limits may apply to your retirement accounts: 401(k)s, IRAs, or other investment vehicles.
Reconcile Your Accounts
Reconciling your accounts regularly can help you keep your books up-to-date and accurate. But making sure they’re reconciled before the year’s end is particularly important, as it will give you a final opportunity to address any issues that may have snowballed since your last review.
Pay particular attention to any unpaid accounts receivable or accounts payable, as this can likewise be a good opportunity to catch up on outstanding debts or invoices.
Reflect on Your Goals and Strategy
Now’s a good time to look back on the previous year. Did you achieve all of your goals? How might you refine your strategy for the coming year?
If you work with a leadership team, this can also be a perfect occasion to solicit their input on how well your company’s processes are performing and generate new ideas to help you hone your strategy for the coming year.
Review Your Staffing Needs
Just as it’s important to reflect on your company’s overall mission, it’s also important to reflect on the personnel who help you accomplish that mission.
Is your current staff sufficient to help you maintain and grow your business? If the answer is “no,” consider bringing on new staff members or offering training to sharpen your existing staff’s skills and competency.
Update Your List of Vendors
It’s not unusual for vendors to change contact information or for your business to switch to new vendors for certain items and supplies. As such, the end of the year is a good time to update your vendor contact information and purge your supplier list of any inactive vendors.
Celebrate Your Victories
Recognizing your workers’ contributions can go a long way toward improving employee performance and engagement (and retainment, for that matter). Take the time to show your appreciation for your team’s hard work and accomplishments.
Here’s a tip: highlight outstanding employees on your website or social media pages to give them some deserved recognition while also drawing attention to your services.
Update Your Technology Stack
What new technology do you need to expand your business in the near future? The year’s end is a great time to update your security software and protocols or introduce new software to help you manage your finances, inventory, and other processes.
Zabel & Co Can Help with EOY Planning and Financial Oversight
Zabel & Company is committed to helping you meet your financial goals and business objectives each and every year.
Our proactive approach to analysis and expansion can help you align your EOY planning with your future goals, while our financial oversight offers transparency and analysis for every aspect of your business. Contact our team today to learn more.