- Get your bookkeeping right
Correct financial and tax planning always begins with proper bookkeeping. If you have no idea of your current financial standing, including knowing how much you have taken and your spending over the past couple of months, planning might be difficult. Have a qualified accountant to help you with this. Automate some of the bookkeeping tasks using various available apps. FreshBooks, an expense tracking solution, is an example of such applications. By understanding your revenue and expenses now, you will have an easier time planning for tax and making the right financial decisions.
- Revisit your pricing
Once you get your bookkeeping right, you are now at a better place to know how you should price your goods or services. Be honest to yourself and take note of the sustainability of your business. Is the current model sustainable, or is there a need for you to work hard? Many small businesses make the mistake of undercharging their clients. This sometimes ends up affecting the sustainability of their businesses.
- Plan your taxes
Although filing your returns is often done once a year, tracking your taxable income should be regular for businesses. Unfortunately, the majority of business owners think that taxes are once in a year thing. As a result, they lose a chance to make the right changes. If you know little about taxation, set up a call with an accountant before the year ends and follow the taxation advice.
- Change the structure of your business
If you find your business model unsustainable, you may think of changing it to suit your changing needs. You can upgrade your business structure from sole proprietorship to a Limited Liability Company (LLC) or corporation. This might simplify many things, including record keeping and taxation as you start a new year.
- Close inactive investments
Some investments can take a lot of money with nothing to show. Since any business intends to make a profit, consider closing such ventures if all avenues to see it make a profit have failed. If there is any inactive venture somewhere that does not generate revenues, consider closing it and diverting resources to something else. This will reduce expenses and tax returns needed from the venture. By the end of the year, you should identify all inactive ventures you have and close them accordingly.
- Plan your holiday
As the holiday season draws closer, you might want to take some time off around the end of the year. Customers are expecting this too. Therefore, you need to plan for the holidays to ensure your clients are satisfied and get everything right. Regardless of your schedule, give all your clients notice in time and set their expectations for your availability. Ensure that they know the dates you will be away and when you will resume operations. Apart from keeping your customers assured, it also gives you a stress-free vacation with minimal calls and disturbances. Planning is good for both your customer and your business.
