It is said that “Businesses that fail to plan, plan to fail”. So always, always have a plan! Especially in small business, efforts are not enough without purpose and direction.
All things considered, the perfect time to do your business planning for the following year is now! Yes, year-end, because the best way to predict the future is to create it. So this year-end, why not add start “analyzing your business status” to your priority list?
Here is a year-end checklist for small businesses that will help you get your business planning off to a good start.
For some small businesses, accounting is really difficult while for others it’s super easy. But whether you’re one of those businessmen with files full of receipts that haven’t even been entered yet or a small business person who has hired an accountant, you have to get this step done before you can do anything else.
So get the help you need and get on with it. Just hiring a bookkeeper and/or accountant will not solve all your problem. You still have to work a lot to get your receipts/transaction records together. Start using accounting Apps like Vyapar to digitize your daily business accounting. You can download App here >> www.vyaparapp.in
In business, it is very important to watch things as they happen. Only then, one can make things happen the way they want. Otherwise, one ends up wondering what happened. Yes, you gotta figure out what is happening to your business & where your business is now.
There are 3 areas you need to examine before your year starts:
1. Balance Sheet: Know all about your business’s assets, liabilities, and equity.
2. The yearly profit/loss report: Glance whether or not your business is profitable at the year-end by itemizing your revenue and expenses.
3. The Cash Flow Statement reconciles your spent cash with your income, showing you where the money has gone or come from.
These numbers help you know what to do and what not to.It is very crucial for any businessman to see this information whenever they need to. But less than 75% of businessmen don’t have access to such data either because they have run through all sales and purchases to arrive at this information or that they need to follow up with the accountant. Both methods take time. This is the reason why using business accounting software like Vyapar is recommended to record daily activities of business digitally. Business reports, cash flow statements, and others can be seen on a click. Yes, back your small business with technology!
You can turn over the required documents to an accountant or prepare your income tax yourself. But, if you happen to be using accounting software for record keeping, one of the many advantages is that your accountant will be able to directly access your business records the way he wants, making you wait for less long.
Remember, A goal without a plan is just a wish! Put your plans into action.