You can breathe a sigh of relief! Business tax season is over, and it’s time to take a step back and review your finances and budget for the upcoming year. This is an important task that will help you ensure the financial health of your business.
Here are three steps we recommend you take now that business tax season is over:
1. Review your finances and solidify plans for the year
Start by reviewing your past financial statements. Then, create a realistic projection for the upcoming year. Consider any expected changes in revenue, expenses, or other financial factors that could affect your cash flow.
Next, analyze your expenses and identify areas where you can cut costs or efficiently use resources. This could include renegotiating vendor contracts, reducing unnecessary expenses, or investing in new technology to streamline processes. Consider the impact of inflation and other economic factors on your business finances. This may require adjusting prices and/or developing more conservative financial goals. Set aside funds for unexpected expenses, emergencies, or other unplanned events that may affect your business operations.
Lastly, review your business's tax obligations and ensure you are up to date with any tax laws or regulations changes. Plan and consult with a tax professional if needed. You’ll want to develop a plan for continued growth and expansion. This may include investing in marketing and advertising, expanding your product or service offerings, or entering new markets.
2. Invest in yourself and your business
We recommend you invest in yourself and your business. Investing in yourself and your business is a great way to help ensure your business is successful in the long run. Some ideas include:
• Take a course or seminar on a business topic or something else that can spawn new skills and ideas.
• Hire a mentor or consultant to help you develop strategies for success.
• Attend industry conferences and networking events to stay current on trends and strategies.
• Invest in marketing and advertising to promote your business.
Investing in your business can mean different things depending on your industry and stage of growth. It could also mean investing in new equipment, hiring more staff, expanding your product line, or building a stronger online presence. Whatever it is, it should focus on improving your business's overall health and helping it grow in the long term.
3. Stay organized with your business as you move forward
As your business grows, staying organized is essential to keep it running smoothly and efficiently. Here are other tips for staying organized:
• Stay Up to Date: The backbone of any thriving business is to stay current on financial, legal, and regulatory changes. This allows you to budget appropriately, avoid breaking laws, and keep your customers happy.
• Invest in a CRM: A customer relationship management (CRM) system is a way to organize all your customers’ information, such as addresses, emails, and sales funnel statuses, in one customer record. A CRM allows you to stay super organized with your customer data for easy access. A popular one is Salesforce.
• Use Accounting Software: If you currently use spreadsheets to track your finances, payroll, and inventory, consider investing in QuickBooks. QuickBooks, designed by Intuit, helps businesses save time and manage finances more effectively. The software is easy to use and has various plans to suit businesses of all sizes.
• Workflows: Set up processes and workflows to manage repetitive tasks and stay organized.
Staying organized will help you keep track of your progress and make it easier to spot areas where you need to make changes. It can also help you find new growth opportunities.
By taking these steps above, you can be sure that your business is on the right track financially. You'll be making progress even if you tackle just one of these steps above. In the meantime, if you'd like more information on how to maximize your small businesses’ financial health, contact us at (203) 641-7678 or here.