Your Business and Year-End

Year end pic for blogAs the year draws to a close, many business owners meet with their accountants and focus on tax planning issues. There are other factors to analyze that will assist in ending 2014 in a positive way while focusing on improving success in 2015. Many advisors recommend business owners add the following topics to their end-of-year accountant meetings.

  1. Review the financial results of your business and compare it with the same year-to-date results from the previous year. Use these figures to evaluate your success and make a plan for improvement in 2015.
  2. If you have not already done so, set up a system to track your success. You should be able to tell how much profit is generated by each dollar that comes in from sales.
  3. Compare your profits to those of other similar businesses within your industry. The information is important to help you know how to plan for 2015.
  4. Consider what resources you need to grow your business in 2015. Do you need to invest in new equipment or hire new people? Will you have cash shortages? Do you need a business loan?
  5. Evaluate whether debts have been made on time and if not, will that be a problem for you in getting any necessary business loan. If so, work with your accountant to help you rectify the problem.
  6. Analyze whether equipment you purchased or people you hired in 2014 have given you the return in the investment that you expected.
  7. Schedule quarterly meetings with your accountant for 2015. Discussions should center on cash flow and improving profitability.
  8. Determine the value of your business. Business owners are advised to frequently assess the value of the business if it had to be sold. This generally considers cash flow and earnings as they compare with other businesses in the same industry.
  9. Identify and evaluate strengths and weaknesses from 2014. Make a plan for overcoming the weaknesses while emphasizing and improving on the strengths for 2015.
  10. If you have thought about changing the structure of your business, such as forming a partnership or a type of corporation, the end of the year is a good time to do that so that you start the new year with the new structure in place.

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