Where did the year go? 2018 zipped by in the blink of an eye, and many business owners are now sitting down to knock out end of year financial tasks while juggling holiday shopping and family gatherings. What end of year financial tasks should be on the top of your list this month?
Examine Your P&L Statements
Sit down to take a look at your yearly expenses and your profit. Where can you cut costs? Where are you losing money? It’s a good idea to assess what can be done to improve your P&L before the end of the year, as well. What outstanding debts could you collect before year end? Would swapping a vendor payment from the 1st to the 15th improve your monthly cash flow?
Now is also a great time to think about partnering with a professional collections partner for the coming year to improve your cash flow. Many small and mid-sized businesses face a year-end budget crunch when giving out holiday bonuses and gifts as a direct result of uncollected invoices. While collecting over the holidays might be uncomfortable, having to let go of an employee when the new year rolls around will be much worse. Make a plan now to increase collections and get your profits higher.
Get Payroll in Order
Make sure that you are on track to give all of your employees their W-2 forms before January 31st. Those forms should also include special gifts and any accrued bonuses. If you don’t get everything in order now, you could be hit with a federal fine if the IRS can prove that you intentionally avoided filing.
Ensure You’re Ready to Go for 2019
Especially if you are a small business or start-up, think critically about what your 2019 financial picture will look like. Don’t wait until January to see if you are ready for a new hire in Q1 or if you are able to purchase the new equipment that you need. Gather together all of your stakeholders and create a budget for the year ahead. Getting your ducks in a row while you tackle other end of year financial tasks will let you fully enjoy the holiday season without worry over the winter months ahead.
Do you sell physical products? End of year is the perfect time to add up how much inventory you have on hand. Adding up what you have on hand also gives you a chance to reconcile your actual inventory with the inventory on your balance sheets. When taking your inventory, you should also count up assets and supplies on hand, like computers, printers and other items around the workplace. If you notice anything is missing or broken, you should add the cost of repair or replacement into your budget for next year.
Partner with Alacrity Collections for Your End of Year Financial Tasks
Alacrity Collections is proud to be a leader in collections. We achieve great results that are over twice the national average and treat all of our customers with dignity and respect. We work tirelessly to protect your brand and improve your net returns. To learn more about our offerings and get in touch, please Visit Us on Facebook, call us at 1-800-752-9663 or set up a phone appointment directly on our representative’s calendar via this link: www.calendly.com/hheemann.