5 Year-End Accounting Tips for Your Small Business
As 2019 comes to a close, you may be looking ahead to 2020 but your small business can benefit by taking some time at the end of the year to take care of some simple accounting tasks. It’s important to go into the next year with a good understanding of where your small business stands. Additionally, it is helpful to have any tax documents you’ll need prepared and accounted for. Let’s look at five things you can do to ensure your business is prepared for 2020.
One good thing to do at the end of the year is to access your profit and loss statements. As the year goes on, you will likely run reports to see how your business is doing, but reviewing them all at the end of the year is a great way to determine any changes you will need to make regarding your business practices in 2020. These statements can also help you see where your business is doing well so that you can continue to grow next year.
Stock Up on Necessities
The end of the year is a great time to stock up on necessities for your business that can be used as deductions during tax time. Does the office need a new computer, or does one of the vans need to be replaced? Consider the equipment, tools, technology, vehicles, and other important items that your business will need or can benefit from in 2020 and make smart purchases before the new year begins.
Close Out Your Books
Checking for open invoices and closing them out is a good practice to have at the end of the year so that no overdue balances carry into the next year. Once you have closed all open invoices and reviewed the year’s income and expenses, you can close out your books and move onto looking towards next year’s business plan.
Organize Files for Taxes
Once you’ve reviewed your statements for the year and closed your books you can begin compiling your tax documentation in one place, so that you are prepared come April. It can be hard to remember where you’ve put things by the time April comes around, so organizing your files now can give you a leg up in the spring.
Assess Your Business Plan
Another great thing to do at the end of the year is to review your overall business plan from the prior year. What was working for your business? What wasn’t working? Reviewing your data can help you see areas where you need to improve to be more profitable. By taking the time to review the year in full before starting on the next year, you can adjust your business plan where you need to and head into 2020 with a solid and workable plan.
The Business Accounting Services You Deserve
Taking the time to do these five steps as the year draws to a close can help you head into 2020 prepared. You can take your business to the next level while also ensuring you are ready for tax season when it begins in the spring. If you need help with business accounting help in Maryland , contact us at CFO Source. We’d be happy to help you prepare for tax season, as well as find ways to make your business more profitable. Give us a call today!