As we transition into fall, what does the month of October mean for your business?
Hopefully, you’re looking to the new year ahead.
And that means making sure all of your ducks are in a row for the end of the year.
In order to be ready for 2022, you need to make sure all of your numbers are up-to-date, organized and correct.
Look over our checklist and make sure you’re taking care of all of the items on your to-do list. The last quarter is here!
#1 Accurate data
We’ve talked before about how important it is to keep your numbers up-to-date.
While bookkeeping might not be your favorite part of business, its effects are far-reaching. We really encourage our clients to make sure the books are updated monthly.
Forecasting for next year starts in October, so if you’re behind, it’s very difficult to have an accurate snapshot of your numbers.
When done right, correct data gives you the power to know exactly where you’re spending your money, where your revenue comes from, and if you can afford to expand or purchase large expenditures.
How can you project for next year — including staff, supplies and resources — if you don’t know what your bottom line currently looks like?
#2 Tax documents
What will the IRS ask of you this year? Do you have all of the documentation in place? What about receipts and deductions?
Another factor to consider is if your current business designation is right for you. Most small businesses are sole proprietorships, but would it make more sense for you to incorporate or become an LLC?
As you collect your tax documents, calculate how much you would have to pay if you were to convert your business.
If you need help deciding, contact our experts at Morgan & Associates. We can walk you through the differences and help you decide what makes the best fiscal sense for your business.
#3 Year-end financial reports
An accurate year-end report is a guide to your company’s financial position and health.
It should contain both snapshots and details on your assets and liabilities, your profit and expenses and your cash flow.
You might have investors that want to see these reports.
Or, if you’re looking for other loans or funding, year-end reports are crucial insights into your business.
At Morgan & Associates, we help clients gain valuable insights into their financial future with expert bookkeeping and training. If you need help balancing the numbers while you run the day-to-day business, contact us today.