With hardly a month to welcome the New year, its time businesses start planning for 2017. The businesses have to be financially prepared for the coming year by putting in place the various business strategies. Following are a few tips that will keep the business-up and running in the long way.
8 Tips to Bring in The New Year
Revisit Your Business Plan
This is important because you need to have a guide to make business decisions as per the current market situation. However, ensure that your original business values and plans are still intact.
Create a Financial Model to Focus on Profitability
Small businesses should avoid the mistake of hiring too many people and be in a situation of not being able to generate enough revenue to pay them.
Get a help of a seasoned accountant to create a financial model. Also, consider integrating a good accounting software in your business process. It will help you pay attention to your expenses, analyze your marketing and sales strategies, forecast your financial goals from bottom-up and check the results from top-down. These simple steps can help in boosting your profits in the long-run.
Wanna Business Loan Next Year, Gather Essential Information
The lending institutions will require the following documents.
Business license, if requested by the lender
Tax information- both personal as well as that of the business
Business as well as personal bank statements
Income statement
Business credit card statement
Comprehensive financial projection
Even if you do not require a business loan, it’s wise to keep the afore mentioned information in place as it will be handy if you want to apply for a business loan in the future.
Evaluate Your Business Processes
This is very important as it will give you an insight into the areas that are running effectively and efficiently, and the areas where your attention is required. For instance, if you are still using spreadsheets to store your customer database, consider moving to a cloud-based CRM. Integrating a cloud-based CRM means you can analyze how effective your marketing and sales strategies are while engaging with your loyal customers. Similarly, consider moving towards paperless office by sending electronic invoice and receiving payments without delay.
Pay Attention to New Tax Rules and Regulations
Though there may not be major changes in the tax policies every year, it’s important to keep up on any new federal, state and local tax rules. You can also check out the website IRS.gov regularly to know about the various changes made on the tax rules and regulations.
Review Your Insurance Policies
Insurance policies that every small business owner should possess include personal liability, property, product liability, vehicle, workers’ compensation and more. Do not leave out health insurance. Review these policies before the start of the new year to avoid paying for unnecessary coverage. Also, check out whether there are better policies available from the competitors. Remember, if you are expanding your business, based on the size of the business you may need to purchase new policies. Therefore, reviewing your insurance policies is much needed.
Set Saving Goals and Make Saving Automatic
By end of this year have a saving goal in place. The goal should be measurable, realistic and timely. Similarly, make arrangements with the bank where you have your business account to open a business saving account where certain sum of money can be deposited every month.
Start Monitoring Your Monthly Expenses
Keep track of your monthly expenses. There are many expense management cloud-based software that help you keep track of every purchase you make and also your travel expenses. Having in place an expense management software will give you an idea where, and how much you are spending and where to cut the cost if you are overspending.
If you want to achieve your business goals for the coming year, you need to stay organized and stick to your budget. When your records are organized, and aligned as per your financial model, it will be easier to see the invoices that have been paid and the ones that are pending. Consider using business software on the cloud, as this will enable you the access from anytime and anywhere.