What do you as a small business owner think of when a business year ends? Analysis, books closing, budgeting, and planning! What else? The year is ending and it is the most suitable time for a small business owner to plan for the new business year; however, it rather becomes the most appalling time of the year for some SME owners. The major reason behind it is taxes which, if not executed properly, can call for an unwelcome consideration from the FBR. So, in this case, being antecedently prepared is the best thing you can do. Thus, we have prepared an year-end checklist for small business owners to plan a smooth business year ahead.
1) Keep your Financial Records Updated
Not an easy task for a small business; but whether you’re a small business owner who has to look after his accounts while managing other business tasks or you’re an entrepreneur who has a pile of records to enter; you have to gear up and start updating your financial records. For this, you can either hire an accountant or go for an accounting software that can manage all your accounts efficiently before you encounter any trouble.
2) Analyze your Business Position
This is very important. You are required to analyze the current position of your business to determine where its stands. The following three fields should be scrutinized.
a) Financial Documents
There are three standard financial documents that must be in your hands to plan the following business year skillfully. These documents include the cash flow statement, the balance sheet and the income statement. Get them prepared or use an accounting software which will generate these three important financial documents for you with a single click. These documents will give you a fair idea of your current business position.
b) Goals Assessment
These financial documents must have given you an idea about your business position. Now, its time to evaluate how your business got here. Have a look at your last year’s plan of action and review your objectives. Did you achieve your last year goals? Note down your successes and failures and get ready to plan for the coming year. These observations will help you achieve your following year’s goals successfully.
c) Tax Strategy Evaluation
How did you manage your taxes this year? Did your current tax strategy worked? Explore various policies like modifying your business structure for better tax management. Seek consultation from a professional or start using an accounting software that manages your taxes like a pro and includes Pakistan based tax laws for running your business in a tax-efficient way.
3) Start Planning
So, you are now all set to start your business planning for the coming year. Set your new business year’s objective, formulate a plan of action and kick off by executing your new tactics and strategies.
4) Prepare your Tax Papers
There are three ways you can prepare your tax papers; do it yourself, hire an accountant or get an accounting software installed. Nonetheless, the best option is an accounting software especially the ones with cloud-based version where you can use and access your business accounting data from anywhere with an internet connection.
Planning is extremely important to run a business competently. Therefore, Just follow this year-end check list and consider yourself all equipped to rock the coming business year.