Now that we start a New Year it is important to reflect on our past year’s performance and set a plan for success in the years to come.
Below, please reference PARO's End-Of-Year checklist for small businesses. These 6 steps can help your business become successful in 2017:
- Review accounts receivable and payable
Accounts Receivable: To ensure that your cash flow is accurate be sure that your accounts receivable is up to date. If a payment is owned collect ASAP, collect in the next year- but file as a cash or accrual basis, or write it off as a loss.
Accounts Payable: Be sure to record your bills on a monthly basis. If you do have a system in place review your accounts payable to see if it is accurate.
- Review you inventory (if applicable)
It is important to keep an accurate record of your inventory quarterly and if you can monthly is even better. This can help you plan in the next year so you know if you are holding too much or missing out if you are holding to little.
- Verify 1099 / W2 information and send out forms
Accurately obtain the personal information from your vendors and contractors to send their 1990s and W-2 forms.
- Close your books and prepare for tax filing
Before you reflect on 2016 your books must be closed. Your bookkeeper or accountant must reconcile your bank accounts, credit cards, and credit facilities. Finally, then can you can review your financial year of 2016 more accurately.
- Review your P&L Key Performance Indicators (KPIs)
Review your key performance indicators by identifying 2 or 3 indicators that drive your business. Over the course of tracking these indicators you are able to see what areas are doing well. From there you can assess the low indicators to help improve your business.
- Create a budget for the new year
Now that you have finally reviewed your financial statements you can plan on working on your businesses’ yearly budget. Since you have gained a financial insight you can budget accordingly.
- Stop by for PARO’s Lunch & Learn Event! January 18th at 12pm, 225 W. Washington , Floor 22.
- See more upcoming events