It’s December and that means it’s time for you to make a few key moves before the new year begins if you have not already done them.
Make Sure Your Bookkeeping is Updated and Accurate
The very first item on your year-end accounting checklist should be making sure your bookkeeping records are updated. Year-end is the time to catch up and tie any loose ends. Reconcile each bank account and credit card statement to ensure accuracy.
Maximize Retirement Contributions
Many small business owners imagine they’ll fund their retirements by selling their business. For most, that’s not realistic, because few small businesses sell for enough to fund secure retirements. Instead, every year, make sure you contribute to a retirement account, like a SEP-IRA or 401 (k). Check your options now as some of these plans must be set up before year-end.
Maximize Your Deductions and Reduce Income
A common practice for year-end tax planning is to accelerate your deductions and delay some income. This can help reduce this year’s taxes, but the best way to minimize your taxes is to have a tax plan in place at the start of the year and follow it. If you don’t have one, consider creating one. Hundley Advisors can provide you with some great tax-planning strategies.
If you’ve had a good year, consider paying vendors in advance, and invoicing customers for work you are doing now in January. The customers may appreciate the extra time to pay, and it will offset some taxes. But, again, the best way to reduce taxes is with a carefully considered tax plan.
If the last time you spoke with your accountant was when they filed your return for 2021, schedule a call with us and we will explain how regular contact with an advisor can help accelerate your growth.
Create a Budget
We all know what a budget is, but what you do with your budget is what makes it an important task on your year-end accounting checklist. You should be using SMART goals, and they need to be aligned with your budget. Your budget should be broken down into monthly or quarterly periods so you can adjust it more easily.
A great way to create a realistic budget that you can stick to is to work with a growth partner that can review your progress and help you fine tune your plan and budget throughout the year. We’d be honored to take your call.
Reflect on a High Level
It is so important to assess your vision and reflect on the ways you have or have not aligned your business with it. Year end is a great time to reflect. You’re able to see things from a full circle perspective which can enlighten you as to the good or bad decisions you made. What did you do well? Where could you improve? What goals did you achieve?
Hundley Advisors is more than a group of accountants. We are Tax Planners and Business Advisors that work to help our clients succeed. Call us today to find out how we can help you grow faster next year!
