The end of the year is here! Business owners, it’s time to take stock.
This doesn’t mean the fiscal year-end for most businesses (Fun fact: the fiscal year-end can be any date 53 weeks following their incorporation). So your finances don’t enjoy a clean slate in the new year, but tons of other maintenance and big-picture tasks are perfect to tackle this time of year.
Ensure Your Financial Reporting is Up-To-Date
As a business owner myself, I know things can get busy and tasks can slip through the cracks. The holiday season can be especially hectic for retail businesses. However, I would suggest moving that financial reporting task to the top of your list.
If you’re anything like me, you’ll want to go into the holiday season feeling confident and calm that you’re closing 2023’s chapter. Well, you can’t do that if your financial reporting is only updated until October 2023. Make sure those books are clean and ready for a new start in 2024!
Manage Your Inventory
If you’re a retail or product-based business, the end of the year is a great time to take stock of your inventory levels, note items that are slow to sell, and make inventory adjustments to optimize cash flow and reduce carrying costs.
With this newly gathered information, you can put strategies in place for a more efficient, profitable business! Drop items that don’t sell, order more of those that fly off the shelves, and set yourself up for a great new year!
Set Your Spending Plan for the New Year
If you kept your financial reporting updated in 2023, you have an automatic head-start on this task! Use the information from this year’s spending to inform next year’s.
If you’re starting from scratch or want to do a deeper dive, here’s my advice for creating your 2024 strategy:
- Understand the big picture of how your money behaved in your business this year. Ask yourself: Do I know my numbers? Were my finances predictable this year? Were my cashflow processes streamlined? Did things run smoothly? Great. Now that you’ve answered those, you have an idea of where you should focus your attention in 2024.
- Take your profit first! Your business shouldn’t be stuck with whatever profit is leftover, but should instead be utilizing it to create a more efficient and strong business!
- If you’re struggling with the big picture of your finances, get some help! There’s no shame in relying on the pros to help your business thrive in the new year! Working with an expert (like me) gives you the clarity and confidence to create and stick to an efficient spending plan.
Getting to know your numbers is the only way to create a realistic financial plan for the new year. Dive in and get started on a great and profitable 2024!
Plan for 2024 Taxes
Depending on your fiscal year-end, your taxes are due 3 months afterward.
Do yourself a huge favour and ensure your 2023 information is organized for when you hand it off to your accountant or tackle it yourself next spring. Here’s what you’ll need:
- Deposit slips
- Business credit card statements
- Bank statements
- Income records, including receipts, sales invoices, bank deposit slips, fee statements
- Loan agreements and year-end balance statements
- Detailed year-end inventory
- Receipts on any capital purchases from the year before (2023)
Phew.
I’d recommend developing some kind of filing system and doing an afternoon of organizing. Then you can go into 2024 knowing the groundwork has been laid and you don’t have to do double the work come June.
Research Grants
Did you know there are tons of grants from the government and other organizations looking to help businesses like yours succeed? You probably did, but haven’t had a moment to do a real deep dive into the opportunities.
If your business enjoys a bit of a holiday slowdown, I urge you to take this precious time to do your research! See what’s out there for your business, fill out some applications, and go into the holidays knowing you may have given your business a little boost for next year!
Search for government grants here!
Take Stock of Your Processes
This one is a great idea for you and your team as 2023 comes to a close. What worked well this year? What caused some hiccups? What could be improved upon? Call on your team to help you determine places where you can improve for an even smoother 2024.
My wish for all business owners is that you go into the holidays feeling relaxed and ring in the new year feeling excited about all you can accomplish. That all starts with wrapping up 2023 with at least some of the steps above.
And, if you could use some assistance setting a superstar strategy for 2024—reach out! Let’s build your profit roadmap and give you clear steps for a profitable year!