Year-End Business Planning: Essential Tips for Small Business Owners

Running a successful small business is contingent upon frequently looking at your business from a higher view and considering where you are at strategically as well as where you are going. There is no greater time for this than the fourth quarter of the year. It’s never too late to hit those lofty goals from last New Year’s Eve, but more importantly, it’s critical to next year’s success to start planning for it now. For inventory-heavy businesses especially, the fourth quarter is crucial for setting up success in the coming year. Here’s what you need to focus on:

1. Inventory Management

  • Conduct a thorough physical inventory count – this is really non-negotiable from an accounting perspective.
  • Identify slow-moving or obsolete stock
  • Consider year-end promotions to clear excess inventory
  • Evaluate your inventory valuation method (FIFO, LIFO, etc.) – if you’re not sure, reach out

2. Financial Review

  • Analyze your profit and loss statement
  • Review your cash flow and projected cash needs
  • Assess your accounts receivable and payable
  • Update your financial forecasts for the coming year

Don’t have these? We can help!

3. Tax Planning

  • Schedule a meeting with your accountant (link to schedule coming soon)
  • Review potential tax deductions and credits
  • Consider deferring income or accelerating expenses
  • Ensure all required tax payments are up to date

4. Business Performance Evaluation

  • Compare actual results to your annual goals
  • Identify areas of improvement and success
  • Analyze customer data for trends and opportunities
  • Review your pricing strategy

5. Strategic Planning for Next Year

  • Set SMART goals for the upcoming year (specific, measurable, attainable, realistic, timed)
  • Evaluate your product mix and consider new offerings
  • Assess your marketing strategies and budget
  • Plan for potential capital investments or expansions

6. Employee and Benefits Review

  • Plan for any year-end bonuses or raises
  • Review and update employee handbooks and policies
  • Evaluate your benefits package and consider changes
  • Plan for any additional staffing needs in the new year

Feeling low on HR fuel? Contact Michelle at michelle@cultivateconsulting.co

7. Technology and Systems Check

  • Assess your current technology and software needs
  • Back up all important business data
  • Review and update cybersecurity measures
  • Plan for any necessary upgrades or replacements

8. Compliance Check

  • Ensure all business licenses and permits are current
  • Review any changes in regulations affecting your industry
  • Update your business insurance policies as needed
  • Plan for any upcoming compliance requirements

We have been business owners for nearly TEN years now. Throughout that time, we have figured out lots of things not to do again, but we have also figured out some great business practices that really drive success year over year. One of those best practices is taking the time to really look at your business strategically and plan for the future. Don’t worry if this doesn’t come naturally to you or if you need help in any of these areas. We have tools and resources to assist with every aspect of your business.

Schedule a call with us any time! https://calendly.com/cultivate_co

Christine Gervais

Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.

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At Cultivate Consulting Group, we understand that you want to achieve lasting financial stability that leads to the legacy you envision for your company and family. The problem is traditional CPA firms are not known for proactive communication, which leads to uncertainty when it comes to your business’s tax efficiency and financial standing.
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