If you’re a small business owner, it is time to start thinking about the fiscal year-end, even though it might seem like the year is just getting started. For most companies, December 31 marks the end of the fiscal year. But most small businesses abandoned this norm and exercise their right to use any fiscal year they like. No matter the day your fiscal year may be, there are certain things you may need to consider around this period.

Things business owners should do before the year-end

Now is an excellent time to plan, most business owners usually have little time for anything during the holiday season, and even the most hard-working ones find themselves behind on their checklists. If this situation sounds familiar, don’t worry, we got you covered. Here are the most critical to do list that will help your business planning get off to a good start.

1.      Talk to your team about any upcoming changes

If you are operating a small company, set a year-end meeting with each of your employees. And in the case that your company is too big for this, take the time to talk to the team as a whole. Let all of them know how the year went. If for instance, it has been a successful business year, you can show them some appreciation by giving them bonuses. Gestures like this will boost your team morale and motivate them to perform better next year.

On the other hand, if the company lost money, share this information with them as well. Talk to your team about the upcoming changes in the year, and what the company goals are to get everything going in the right direction.

2.      Get your finances in order

At least a few weeks before the end of the year, try to meet with your accountant. It is essential to know where you stand so you can determine if you will need to make any financial move. Also, you can use this medium to review your financial statements, establish a timeline for tax deadlines, and ask questions about deductions and so on.

Meeting with an accountant will leave you better prepared to face both the tax season and the new year. If you don’t already have a Byron Bay Accountant on your payroll, now may be the time to hire one and get your finances for the next year.

3.      Prepare to hire

If one of your plans is to hire more workers for your company, now is the time to start preparing to bring on the new members. Note that this process can be a little time-consuming. You want to hire people who have the required skills to help your company grow, and it can be challenging to find the right fit so you can start searching now.

Also, this also means you have to obtain certain documents. You’ll need to file Form I-9, employer identification number (EIN), report information about new hires, and withhold taxes. Besides, you will need to establish compensation plans with the company and obtain workers’ compensation insurance.

4.      Look for outsourcing opportunities

If you stretched thin more emotionally, physically, and financially at the end of the fiscal year, consider outsourcing some of the critical areas of your business such as payment processing, web security, and even email management.

Business owners think they can save more money by doing these types of tasks themselves, but they often end up spending way more than an excellent service would cost with a mediocre result. So why not outsource the assignment you’d rather avoid and focus on the more important task that got you into the business in the place.

5.      Consider your legal structures

Are you a sole proprietor that now wanting his/her company to become S Corporation or LLC? If you are not sure what to do to achieve your aim, it is recommended that you contact a legal professional.  A legal practitioner can answer all the questions you may have related to changing your entity and help you towards the legal structure that can help your company.

6.      Go digital with accounting solution

Instead of relying on manual means, it’s high time to go digital for your accounting solutions. With an accounting solution, for instance, you can store and scan invoices which could also be linked to an equivalent transactional update. Tax calculations and balance sheet creation, especially at this period is especially easy with accounting software.

These accounting solutions come with re-defined outlines, which make it easy for you to create record specifically to your business need. Accounting software also makes it easy to gather and access your financial records, stay confident, and updated. It also makes it possible for you to save physical space as you will not need to maintain and store old files.

7.      Plan for the Future

The end of a fiscal year is the best time to assess where your business stands and what you can do to improve its current state. To improve the financial aspect of your business, talk to your team, and discuss the financial position at the end of the year while also setting a new goal for the coming year.

If you manage your business on your own and don’t have a finance team, assess your current situation and where you wish to see your business next year. Explore the means to maximize profit, and if your business is not technology reliant, this will be the best time to get technological solutions that suit your requirements.


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