Blog

Weekly Take-Away:  Communication is key, especially when updating processes.  This blog was scheduled to post on Tuesday (as per our new system of two general informative blogs per week).  Even though this blog features the crazy time at year-end, as an accounting firm our year-end work “bleeds” into January with required estimates and requests for planning meetings and final information requests.  This past week our work included firming up personal tax estimate #4 due (in general) 1/15/2025.  Even though December 31st is seen as the official end of the year for most businesses and tends to be a bit chaotic for business owners, the beginning of January is actually a crazy time too, BUT, also a good time to get some extra housekeeping done for your business. Read on for some tips to help you feel prepared to face the new year.

• Review your goals and KPIs:  A lot has likely happened for your business over the course of the previous 12 months. The beginning of the year is the perfect time to take a look back and see how your performance stacked up against your goals AND create new ones!  Consider your KPIs and review how you did. Be honest with yourself. If you didn’t make your goals, that’s okay. Now you can look at what went wrong–or right–and adjust accordingly. Were there unexpected surprises that affected your business? Could you prepare more for slower times? Did you take on too much all at once?

If you met or exceeded your goals, take some time to celebrate the achievements🎇🍾🤸🏻.

• Review and update your business plan:  It’s always surprising to see how reality compares to your original business plan. Give yourself the opportunity to evaluate how you’re doing and see if your business is becoming what you hoped it would.  Remember if your operations are not up to your standards this is an opportunity to review and tweak.  It’s also a great time to ask yourself if your goals and vision have changed or if you haven’t been focused enough on them. It’s okay to adapt your vision as your business evolves and you understand the market better, but make sure the change is one you intend to make, not one that’s happened unconsciously.

AND take a look at our 1/10/2025 Blog post with helpful links

• Reconcile accounts receivable:  Unpaid invoices are often one of the biggest disruptors to cash flow. Check if you have any outstanding accounts and remind those clients to settle up before the year gets underway.  This is actually an opportunity to check in on your customers/clients/patients find out what is going on with them and why their account balance is still open from last year.
• Review prior year expenses:  This is especially important as you can evaluate those “pre-set” or automatic payments, are they still necessary. You can also confirm that none of your prior year’s expense payments “fell through the cracks” and set up those recurring expenses on automatic payment to assure this does not occur in the future.
• Review subscriptions:  It’s so easy to let subscriptions fly under the radar, but they quickly add up. Review your active subscriptions and cancel any that aren’t relevant anymore. It’s an easy way to help with cash flow and profits.  This may also be an opportunity to choose some new ones that better meet your needs.
• Verify vendor, employee and/or client information: You already know that a lot can change for your business over the course of the year. The same may be true for some of the other businesses and individuals that you work with. Take some time to make sure you have their correct information and are aware of any changes to their business terms.

AND take a look at our 1/07/2025 Heads UP Blog post with helpful tips on timely 1099 preparation

• Send out your annual reminder letters/checklists:  we are setting up our “Welcome to Tax Season 2025” letter with helpful links, worksheets and checklists, we are also sending out specific tax plan checklists to our business clients.  As crazy as it seems we find people actually look forward to these letters, even though they include invoices and engagement letters.  Some businesses send out letters which share what they have been up to over the year.  People love to feel the connection by sharing some milestones.  We like to include a thank you to let our clients know how much we appreciate their business.

Mention your employees, thank them for all their hard work over prior year. Call attention to your successes and celebrate all that you’ve achieved. It’s a great way to provide some recognition and highlight the most important events of the past year, while stirring up excitement for the upcoming year.

• Consider annual bonuses (if you’ve missed that opportunity in November or December) AND mark your calendar for next year:  The end of the year is a terrific time to reward employees for a job well done, but if for some reason you were not able to add a little something to those final 2024 payroll checks extra money in January will surely make them smile. Even if you have an established bonus program, it’s always nice to surprise employees with a gift. It’s a personal way to say thank-you and let them know how much you appreciate them.  There’s still time in January if you missed that opportunity in November or December!

Final thoughts

The beginning of the year is notoriously busy, and getting back into the swing of things after the holidays make it even harder to get back on track and up to speed.   As we have pointed out it’s a great time to take a look back and celebrate your accomplishments and position your business for the year ahead. You’ll be glad you did when you start reviewing your comparative numbers.  Get ready to take on the next one with a sense of renewal.

What’s next?

Click through to some of our complementary resources or get in touch:  Contact us if you have tax concerns, tax minimization questions or want to discuss the next steps for your business success and financial goals.