As we welcome a new year, all of us at Main Accounting Services hope that you are feeling refreshed, filled with renewed energy, and ready to hit the ground running!
By now, your business planning, goals and objectives for the year ahead have been documented and you have built a budget that reflects these goals and is ready for approval. January is the time to make sure you set your firm up for success by wrapping up any unfinished tasks related to your financials.
Review this checklist and complete any outstanding items.
Note that the deadline for completing many of these tasks is the end of January:
- Add any business expenses paid with personal funds to your business financials.
- Review any uncleared checks and determine if they should be voided or reissued.
- Deliver your completed and reconciled financial statements to your tax preparer by the end of January or early February to avoid tax extension delays.
- If you are an LLC or S-corp, you need to file Beneficial Ownership Information (BOI) with FinCEN. Here is the link for more information and to file.
- Prepare and send 1099s to vendors by the end of January.
- Make sure all bonuses and wages paid to employees are included in their W2s.
- Add all health insurance premiums paid by the company to W2s.
- Prepare and send W2s to employees by the end of January (update employee addresses in your payroll system to ensure delivery). Consider checking with your payroll provider to see if they will mail them for you – many providers will do so for a small fee.
- Evaluate your pricing. Have you increased your prices and fees to compensate for increases for software and labor costs? If so, you will need to communicate these increases to your clients.
- Approve your final budget if you have not already done so.
Not all planning is based on financials.
It’s important to start tracking your KPI and specific metrics from the beginning of the year. Reviewing your annual goals regularly will help you and your team stay focused and on track, and allow you to make adjustments as needed. When revising or setting fresh goals, remember to keep them SMART (Specific, Measurable, Achievable, Relevant and Time-Bound).
The start of a new year is also the ideal time to focus on improving efficiency. Keep in mind that taking small steps can have a big impact. These might include:
- Evaluating your tech stack to ensure you are fully utilizing all current software.
- Implementing process improvements.
- Planning vacations for the year for you and your team.
- Setting up recurring meetings with your team.
Main Accounting Services understands the challenges and importance of maintaining solid financials. We are here to support the success and profitability of your growing firm by providing insightful information, accurate and timely reports, and financial explanations customized to meet your needs. Click here to schedule a consultation.