Are you feeling overwhelmed with making sure your small business is financially ready for the new year? As the current year comes to a close, small business owners should be determining the necessary steps they need to establish for growing and maintaining a prosperous business. Here are some small business financial strategies you can utilize to have a successful start to the upcoming year:
Prepare your tax work
The end of the year is a great time to start preparing your small business’ taxes. Looking over paperwork in December can help you spot any issues that may arise once tax season comes around. Consult with a financial advisor for assistance with tax preparation and to see if your business qualifies for any additional deductions.
Have cash available
Times can get tough when running a small business, and with so much uncertainty nowadays, having a significant savings balance is important to make sure you’re ready for anything. Review your business’ spending habits from the past year to determine how much of next year’s budget should be allocated for unforeseen expenses. Looking into establishing or increasing a line of credit for your business can also help ensure that unexpected cash flow demands can be met.
One of the biggest benefits of turning your business into a Corporation or LLC is that you are eligible for numerous tax benefits, such as deducting startup and operational expenses, deducting employee benefits, and the ability to spread out losses over a larger period of time. Contact Emerald Financial Partners to help guide you through incorporating your Maryland business.
It’s a good idea to go through your documents and small business strategies to stay financially organized and on track as you kick off the new year. Compiling documents such as your balance sheet, income statement, and cash flow statement can help determine your business’ current ratio, debt ratio, and gross profit margins, all of which provide guidance for adjustments your business may need for the following year. In addition, getting rid of old paperwork, correcting filing mistakes, and checking expirations on licensing can help your small business stay up to date.
Evaluate your Current Processes
The process of evaluating your current standing small business strategies and implementing new routines as the years change can be daunting. The experts at Emerald Financial Partners can help you understand your financial reports, prepare your taxes and make sure you’re ready for anything the new year may bring. Contact us today so your business can have its best year yet!