Introduction: How to End a Business Year?
What’s the best way to end a year?
The answer to this question depends on how you look at it. If you’re the type of entrepreneur who loves setting resolutions for the new year, then you might want to focus on finishing what you’ve started.
If you’re someone who likes to enjoy their holidays with family and friends, then perhaps this is a time for reflection and celebration.
If you’re someone who likes to take advantage of the last few days of the year by putting in as much work as possible, then it can be a time for heavy duty strategizing and prioritizing.
No matter which way is most important for you, there are certain things that will help make your end-of-year review process smoother – no matter what your preference!
Ending a Business Year with Honors
During the last days of December, most entrepreneurs are in the holiday mood and it is hard to focus on work. However, it is important to stay productive so that you can finish your tasks before the year ends. I want to provide you with some tips on how to end the year right.
The first thing that you should do is take care of your personal relationships. Spend time with friends and family. It’s also a good idea to update your social media profiles, media kits, email signatures, speaker 1-sheets and website.
It is not always easy to end the year on a positive note. You need to reflect on the past year and think about all that you have accomplished.
To end the business year with grace and gratitude, here are some things you can do.
1. Be thankful for what your business has accomplished this past year
2. Reflect on all the hard work you put in to achieve these successes
3. Acknowledge any failures or losses along the way
4. Double down on your strengths
5. Think of how you will close out your great business year in 2022
Another thing you can do is review your financial statements. This will provide a complete overview of where your business started at this point last year and will show where it is now.
Here are some key statements you should review and update:
Income statement: The income statement summarizes the company’s revenues, expenses and earnings. It is also called a profit and loss statement, a P&L or a P&L report.
The balance sheet: The balance sheet is a summary of the company’s assets and liabilities at a given point in time. It is also called the stockholder’s equity or the firm’s composition of capital.
The cash flow statement: A cash flow statement summarizes all the company’s cash transactions for a certain period of time, typically one year.
Tax returns: Tax return may be filed to report business income from an entity such as sole proprietorship or partnership to government authorities such as Internal Revenue Service (IRS).
Tools you can use to have your financial statements completed are wave.com and quickbooks.com. It would be a good idea to complete the transactions every quarter, so you won’t have a backlog of documents to enter in December of each year.
Find new and rewarding ways utilize your profits. The profits of any business are the most important thing. This is what will determine if the company will be successful or not. There are many ways to make sure you get the most out of your profits.
Here are two ways.
Pay attention to the ROI on new projects: This is a simple thing to do but can have a big impact. When investing in a new project, it’s important to calculate the return on investment and see if it’s worth taking on. If not, then don’t take on that project.
Upgrade your business equipment: Now will be a good time to invest in any equipment that will increase your revenue. The days following Christmas are usually filled with all kinds of sales and discounts. Use the opportunity to upgrade that phone or laptop, buy courses or business subscriptions, or even that new comany vehicle. Remember, as an entrepreneur, you can claim for all of these pieces of equipment as a deductible.
The end of year is a perfect time for reflection. Now is the time to do some mental checkups and set goals for next year.
Let me know in the comments if any of these strategies resonate with you.
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