There’s no better way to start the new year than by ensuring you have completely closed your 2022 books. When running a business, it is extremely important to ensure that you do not miss any steps when it comes to accounting and finances.
In order to run a sustainable and healthy business process, ensuring that your organization has the capital needed to operate in the years to come is crucial. In this article, we will discuss preparing your business for the end of the year, so that you can close your books confidently.
Send Invoice Reminders
Getting a head start on your 2022 wrap-up is crucial to avoiding stress and making sure you have enough time to iron out mistakes. By sending invoice reminders, you will be able to collect the necessary documentation needed to close out the books. Keep in mind that the holiday season is busy for your partners, employees, and customers. So, now is the time to send a little reminder! Everyone needs a gentle push every now and again.
Pay Your Remaining Bills
If you have any bills that have been lingering, be sure to take them off your plate and close the gap on these before the start of 2023. If there are any disputes that need to be made, now is the time to do so. Making sure that you have paid all of your overdue will help you more accurately project your recommended funding plan for the new year.
Double-Check Your Contractors Hours
Many small businesses have jumped on the train of hiring contractors. Contractors are a great addition to any team, as they act as part-time employees who do not need the benefits and other perks that full-time candidates require. However, if you have stop-and-go contractors, it is important to check in with these individuals to make sure you have paid them in full. Again, this will help you plan for how much extra cash you have on hand in the new year.
Separate Your Personal and Business Expenses
As a small business owner, it can be tricky to keep your personal finances and professional expenses separate. Before closing out the books, double-check your accounting and ensure that every professional expense is accounted for. You should also make sure that any business expense you purchased with personal cash is reimbursed accordingly. This will help you keep a clean record in the case of a surprise audit.
Send a Thank-You to Your Employees and Partners
In the spirit of the holidays and the New Year, be sure to send a thank you to your employees and partners as you close out the book. This is especially important if you have been in communication with these individuals when asking for things like invoices and recipes. Your employees work hard to make sure you get your job done, so send them a small token of your appreciation!
Speak With a Professional About Preparing for 2023
The end of the year creeps up on us all very quickly. To ensure that you have a solid process in place when it comes to your business finances in 2023, now is the time to start seeking professional help. A professional financial planner can help you create a budget for the first quarter of the new year, to make your business strategy the best one yet. Contact Bottom Line Consulting to get started today!