2021 has been a challenging – and exciting – business year, but it’s time to put it behind you. Now is the season to close your books, get ready for tax filing, and plan for 2022.
You may have an in-house accountant that will complete this project for you, or you may use a separate company, but no matter how you decide to manage your end-of-year, the following tasks will help you get your Nashville business in the perfect position for the coming year.
What Are Some Best Practices?
- Your Financial Performance Summary
Meet with your team to compare how the business managed its resources year over year, determining any adjustments that may need to occur before the end of the year. You will want to determine if your business closes out the year profitably as well as some ways you can ensure a strong finish. Based on your findings, set your long-term goals in your 2022 plan, including improvements that will ensure you are resolving past missteps. Your accounting team can use your current and previous business evaluations to create a projected budget for the coming year.
- Tax Planning
Once your financial plan is complete, a tax professional can help determine how to assess your financial position and balance it with your tax scenario. They may advise you to purchase new equipment or recruit some new talent, for example. Wise management of your business expenses is a big part of decreasing your tax liability. Keep in mind that scheduling regular meetings with a tax professional almost always saves you and your business money.
- Independent Contractors
If someone works for your business but isn’t on payroll, the IRS requires you to report how much you have paid them. Throughout the year, it’s a good idea to request a W-9 form from any vendor or contractor that your business has paid a minimum being $600 during the year. This practice streamlines your end-of-year process.
- Taking Inventory
Physical inventory is highly recommended at least once per year, even if your business doesn’t complete one in the traditional sense. You should inventory items such as office supplies and equipment, equipment that needs upgrading, or office tools you will be purchasing according to your tax plan (see above).
- People, Too
Employees are one of the most vital pieces of your business, so conduct performance evaluations and encourage personal goal-setting to guarantee growth for the business year to come.
What Are Some New Year’s Resolutions For My Nashville Business?
Your business-related New Year’s resolutions should include primary income, bottom-line, expense, and marketing goals. Create realistic – yet challenging – goals for your business and employees, and ensure your team has the resources available to meet those goals.
- Improve your business’s digital experience
Is your website outdated or not producing enough leads? If not, it may be time for a website redesign, and you can work with a marketing agency to improve your SEO or rewrite the landing pages. Marketing strategies will get stale over time, as will your website, so it’s essential to analyze your online presence to determine what can be optimized or enhanced.
- Schedule regular meetings for your business year
End-of-year is the right time to create your schedule for important meetings. Plan your quarterly tax and financial planning meetings, as well as monthly staff meetings, at this time. Staff meetings should be used to discuss weekly or monthly goals; this keeps employees updated with company news and policies and helps increase and maintain your team’s motivation.
- Give back
Giving back to your community through service or charitable donations is great for your personal self, your business self, and your business image! This practice enhances your business’ reputation, promotes you as a community role model, increases company morale, opens up new networking opportunities, and improves the overall liveability of any community. It’s emotionally satisfying, too.
- Build Team Relationships
Business owners that ineffectively manage their teams, failing to support engagement and workplace satisfaction, end up paying a high price. Set aside money in the budget and make plans for team-building exercises for your employees to create a healthy workplace dynamic. Research has shown that team-building exercises increase trust, communication, collaboration while also decreasing conflict.
You may find that you need some support as you close out your Nashville business year, so keep in mind that I am here to help! As a small business owner myself, I’m experienced in all of the same challenges you face this time of year, and with those in mind, I’ve created products and resources that can help you make 2022 your best year yet! Contact me for more information or to set up a consultation.