The end of the year is slowly knocking on the door and you don't know what to do first? Take inspiration from our tips and make the most of this hectic period.
Before the end of the year, an accounting review, or audit, is required to verify the financial statements. The accounts must be kept honestly and properly, as this is the only way to manage the business properly and make strategic decisions. The annual closure is then a process of checking, reconciling and verifying that all transactions have been correctly accounted for.
It is more important for a business to track income and expenses than revenue and expenses. Every entrepreneur should regularly monitor the cash flow of income and expenses and develop further strategic actions based on the accounting data.
At the end of the year, the accounts need to be closed and this involves filing tax returns and reports to the social security and health insurance companies. The end of the year is a very hectic time and often businesses deal with tax returns at the last minute. Start dealing with these obligations in advance without stress. Although tax returns can be filed up until 1 April, it is a good idea to get this paperwork sorted as soon as possible.
At the end of the year, there is a distribution of profits in the company and ideally some of the profits should be invested. Only by investing in your own business can you achieve higher returns and be more successful in the market. However, it is important to invest not only directly in the business, but also in other areas to ensure the best possible diversification and thus provide a passive income. In these times of high inflation, it is particularly important not to keep money in an account but to invest wisely.
Determining the strategy
Have you achieved your set goals? Evaluate how you did throughout the year and set goals for the year ahead. Determine the exact steps you will take to achieve them. When you set goals, you take control of the direction of your business. You'll create a vision for your business and make it much easier to achieve, either on your own or with your team. Goals should be SMART and the whole team should be familiar with them, this is the only way they can be achieved in the future.
Gift your business partners and employees
Don't forget your business partners and employees before Christmas and strengthen your relationships with a thoughtful gift that shows you appreciate them. Receiving a gift is a powerful experience and will foster good relationships.
Close out the year, take stock of how you've done, and enter the following year with your business strategy already set and paperwork taken care of.