End of Year Accounting: The 10 Actions All Small Business Owners Need to Take
The end of 2018 was awesome with its uniqueness, but now is ended and here comes 2019. Most small business owners are being immersed in Q4 prep: it still very, much possible they leave out some vital ingredient out of their to-do list. How sad is it that only one wrong decision can spoil your long-term legacy, it is also applicable with business, one forgotten item out of your to-do list could set your entire business back, or entirely get you penalized for the coming year. With that said, here are 10 actionable steps to take for your end of year accounting.
1. Submit Delayed Filings Or Dissolutions If Necessary
This is specifically to those small business scale owners: those who desire to build a startup or formally close one.
For those business owners who want to incorporate or create a limited liability company (LLC), it a brilliant concept to look into a delayed filing. The delayed filing allows you a business owner to file all your paperwork and add an “effect on” date on it, within a month or more into the future. Your business startup date also should be fully formed and approved. Although, this not done by any form of requirement. As to this effect, you may have to patiently wait to file in next year, but at this, you will have to wait for a more extended period than anticipated. Remember, you are starting alongside other entrepreneurs, and January tends to be a hectic month for processing incorporation paperwork.
Dissolution; conversely, in-tells a formal dissolution or a close of your business with the state. You as a business owner can’t put up a “closed” to your business; even with a closed sign hanging on your door, it can’t be enacted except through proper procedures. With this, your business is still considered to be in existence with the states. To achieve this aim the proper way a letter of dissolution must be filed with the state secretary. Carrying these appropriate measures will ensure an official close to your business. Doing this will strip your company of all it expected obligations (like the payment of taxes or state fees) to fulfil from there on out.
2. Meet With An Accountant Or Bookkeeper
I am not a certified financial professional, and it would be practically impossible for me to give any entrepreneur productive financial advice. Although, the best I can offer here is to recommend small business owners schedule a date with an accountant or bookkeepers!
The decision of saving a date to meet with a professional would automatically allow you have access to all your ducks in a row. Within this period you stand the privilege of asking him/her about deductions, review your financial statements and also set up a timeline for tax deadlines (for example you may choose to pay taxes on a quarterly basis) meeting a professor will get you properly equip for the new year and its tax season.
3. Revisit Your Inventory
What was highly demanded, and what was not demanded in your business for 2018? Take a complete stock of what you have in out. If you offer services and not physical products for sales, then, take out time to rightly evaluate which of the products was highly demanded and which was not. At the cause of evaluation you can also map out a working strategy for 2019 that focuses more on items that were highly demanded, and at the same time let go of all the limiting sells strategies that were not equivalent to your time and efforts.
4. Prepare To Hire
The New Year it indeed the perfect time to bring in new team members if your goal is to hire full-time employees.
Hiring can be time-consuming, and I guess you would want to seek out employees that can also aid the growth of your business, and not hiring those that would offer a busy as a bee service with little or no impact. If that is your desire than keep this in mind while planning for your job description and potential interview candidates.
Preparing to hire means obtaining certain documents. This will entail you filing for an employer identification number (EIN), file from 1-9, report information about your new hire to the state, and also withhold taxes. In addition to this, you will need to get workers’ compensation plan alongside a compensation insurance plan within your business.
5. Conduct End-of-Year Reviews
Do you already have employees? Whether they are part-time or full-time, schedule time to meet with them for year-end reviews.
Discuss their performance over the year, and chat more about their future in the company. They might be ready for a promotion or could use a little extra mentoring within their department. Encourage them to provide you with feedback about the business too.
6. Determine If You Should Change Legal Structures
One of the fundamental laws of business is “the law of growth” have your experienced that as a sole proprietor, and now maybe desire to expand? Then, you can make a switch to a different entity. If you want to become an LLC or S Corporation and short of idea on what next step to take, than we strongly recommend seeking the attention of a legal professional. They can offer you professional answers about changing your entity type and will provide you with a hand to hold that will lead you toward the legal structure that will suit your best interest.
7. Update Your Social Media Presence
Are there old Pinterest you would want to clear off? Or is your twitter handle filled with irreverent tweets from series of month ago? Then, I guess it time to clean up your closet. Make up new Facebook cover page and update and upgrade where necessary.
You can choose to start up right away, update most social media items. After that, put up strategic plans on how to create, share and engage your social media followers with contents for the year 2019.
8. Inform Your Team About Upcoming Changes
The success of a game can never be attributed to a single individual, -but to everyone that participated actively or passively. Travelling alongside with your team is extremely important, keep your team in the loop. This may include mentors, employees, advisors, or partners with your business.
9. Review Your Business Plan
Review your plans, and edit/recreate them where necessary, remember it was the roadmap that set you up going. Evaluate properly to see if you had any target for your business surpassed or unattained. Was there any change in the management of your organization? Are you still in sync with your financial projects? If you observe any noticeable changes, edit your business plan and reflect them.
10. Flashback At The Items Accomplished In 2018
I bet you agree with me that so much can be achieved within a year. This includes both good and bad which are both the outcome of our evaluations. There are no doubts you dealt with some hurdle along the way, and all this has also contributed to building your strategies, they all contributed to your success and who you finally become in the future. Take out moment to reflect on those hurdles and the employed strategies you used to overcome afterwards do ensure you share with your team members. And ensure you all were excited about your previous accomplishment. After that, you all can buckle up for the 2019 and prepared your banks for more success.