Over the last few weeks, the Rules of Thumb blog from MoneyThumb has talked about the end of the year tasks for accountants and also end of the year tasks to help get your personal finances off to the right foot in 2019. To wind up our end of the year advice on this Tuesday--exactly one week before Christmas--we'd like to share with you an end of the year checklist for small business owners.
The following checklist is courtesy of The Balance Small Business.
This small business year-end checklist will help you get your income taxes in order and get your business planning off to a good start.
1) Get your financial books in order.
For some small businesses, this is really difficult while for others it's a breeze. But whether you're one of those solo entrepreneurs with a glovebox full of receipts that haven't even been entered yet or a small business person who has a bookkeeper on your payroll, you have to get this step done before you can do anything else.
So get the help you need and get on with it. Hire a bookkeeper and/or accountant if you need to.
2) Determine your position.
The next step on your small business year-end checklist is to figure out where your business is now. There are three areas you need to examine:
- Cash flow from operating activities - such as revenues and expenses
- Cash flow from investing activities - such as assets purchased and assets sold
- Cash flow from financial activities - such as loans and loan repayments
3) Plan for the coming year.
All right. You’ve done all the groundwork and you're ready to do some business planning. That means that you are going to:
- Set next year's goals.
- Prepare an action plan or plans.
- Start implementing your action plans.
4) Get your tax documents prepared.
You can turn over the required documents to an accountant or prepare your income tax yourself. Getting Your Tax Records Together for Your Accountant lists the key records your tax accountant will need to prepare your income tax. If you happen to be using one of the excellent cloud-based accounting software programs for record keeping, one of the many advantages is that your accountant will be able to directly access your business records online.