Year End Checklist For Small Business: When it comes to owning and operating a small business, this is a task that can certainly be stressful; however, this itself is a sign that your business itself is doing extremely well.. On the other hand, it can be easy to lose the overall view of the bigger picture thanks to factors such as emails, phone calls, customers, employees, and so much more. For instance, it can be difficult to determine whether or not you have enough cash flow in order to continue paying your employees whenever things are slow, determining the goals you have for the future, the threats and risks that both you and your business stand to face, and so much more.
Now that the year 2021 is upon us, small business owners should take the time to determine exactly where things stand, as well as where things may need to be improved. Here are four of the most useful year-end tips involving small businesses to consider making note of.
*First and foremost, take the time to back up all of your computers and mobile devices. In the event that your business is one that uses software that is cloud-based, it’s a good idea to consider using more than one single backup method, even though you may already believe that you may be covered since you’re likely using a cloud service that is well known. In fact, you should always consider using two digital platforms to back everything up, as well as two locations. Furthermore, you should also have a single print copy or a copy on either a hard drive or a local server.
*It’s also important that you set up an appointment with your accountant. This is because the new tax law has resulted in changes being made for small businesses, including for expense reporting. When meeting with your accountant, you will want to ensure that they go over all of your financials, as well as obtain advice on factors such as distributions, bonuses, and various types of tax strategies for the end of the year.
*You will also need to take the time to run financial reports as well. At the very least, it’s important that you put together a profit and loss statement, as well as a cash flow statement and a balance sheet. Determine exactly where your money went to the previous year, as well as whether or not you’re on the right track in order to meet all of your profit goals and your needs involving cash flow.
*Speaking with an attorney is another equally important task that you will need to consider partaking in as well. This is something that should always be done annually and will let you know what all you will need to do in order to keep up to date with all contracts, employment laws, and regulations that will ultimately affect your small business. Furthermore, speaking with an attorney will also help you to both minimize and evaluate all of the legal risks that you and/or your small business may end up potentially facing as time goes on.
For small business strategies and legal help, schedule a free consultation with Hollister Legal today!