Give Yourself Peace of Mind for the New Year
| Posted in Bank Blogs
Another year is coming to an end, but that doesn’t mean your work is done. In fact, the close of the year is one of the best times to step back, take stock, and set your business up for success in the months ahead.
From tuning up your finances to strengthening your defenses against fraud to reconnecting with customers, here are smart steps you can take to start the new year with confidence and success.
- Review your financial statements- Run and analyze your profit-and-loss statement, balance sheet, and cash-flow report to get a clear view of your business’s financial health. Compare them with last year’s numbers to spot trends or shifts. Then dig deeper to understand why things changed. Did operating expenses rise? Were sales stronger? Use data-driven insights to guide your decisions moving forward.
- Create your budget and goals for the new year- Once you understand your financial picture, planning becomes much easier. Using real data, and considering your goals, update (or create) your business plan along with a realistic budget that reflects anticipated costs, adjustments in the market, and your priorities.
- Do a little tax planning- Review your tax-deductible expenses and estimated tax payments to understand where you stand. If you need to make a deductible business purchase, consider completing it before year-end. You may also be able to maximize retirement contributions for you and your employees to reduce taxable income (consult your tax advisor).
- Assess your debt- Look at outstanding loans and credit card balances, noting interest rates and payment schedules. If your debt load is high, explore options to consolidate or refinance, or map out a repayment plan that helps free up cash flow in the new year.
- Secure your insurance protections- As part of your financial review, revisit your insurance coverage to ensure it still meets your needs, especially if your business has expanded or your assets have grown. The right protection can save you significant time, money, and stress down the road.
- Understand your target audience- Clarify who your customers are, their needs, and how you can reach them more cost-effectively next year. Consider sending surveys to current customers and creating customer profiles to help you target new prospects more efficiently.
- Lock down your systems and data- Update your systems, software, and passwords (and make sure your passwords are strong and unique). Enable two-factor authentication for an added layer of protection for your customers. Finally, develop or refresh your plan for responding to cyberattacks or system crashes so you’re prepared if your data or tech is ever compromised.
By focusing on these aspects of your business, you can give yourself the ultimate gift heading into the new year: peace of mind. That’s priceless.