2011 / 2012 Evaluation and Planning

MAKING THE MOST OF YEAR-END

When approaching the end of your fiscal year, the focus tends to be on taxes. While getting everything in order, it is also important to not lose sight of evaluating and planning for 2012. The information is right there, so it is the perfect time to analyze, learn and make critical business decisions for next year and beyond.

However, before you can plan for next year it is important to have everything in order for this year. We have created this checklist for you to help you with this process, or feel free to pick up the phone and give us a call with any questions you may have.

STEP 1:  Get your financial books in order

This is probably the most critical step in the year-end process. It is very important that your books are up-to-date and accurate, otherwise analysis and decision making may not be possible.  

STEP 2:  Analyze your financial statements

To truly understand your business’ financial position, your financial statements serve as the best source of key information to discover trends, set a measurable baseline and formulate strategies. Those documents are your Balance Sheet, Income Statement, and Cash Flow Statement.  In addition there are other financial metrics that can be useful including ratios and comparisons to industry standards.

STEP 3:  Review performance against goals

Every year you set goals for your business both operationally and financially. Another important step is to analyze how your business performed against your goals. Make sure you understand both successes and where things came up short.

STEP 4:  Evaluate tax strategies for 2011

It is important to sit back and look at the tax strategies that you are using for your business and determine if you are getting the most out of them. Should you defer income, increase expenses, write-off inventory, or contribute to retirement plans? Communication and planning with your tax professional are vital to this process. 

STEP 5:  Prepare for year-end

Whether you are a do-it-yourselfer or you leverage the expertise of an tax accountant, make sure your information is timely and accurate. You don’t need any surprises when your tax bill comes.

LET’S TALK PLANNING

At All In One Accounting, our mission is to built long term relationships with our clients that continually achieve great results. Spending the extra effort planning at year end makes the year start with energy, and creates an action plan that acts as a guide throughout the next fiscal year.

Here are some points for you to consider when planning for 2012 and as always feel comfortable that we will be here to help you every step of the way.

POINT 1:  Set aside time to focus

Everyone knows they should do it, but many don’t spend dedicated time effectively planning for the year to come. A small investment of time makes a significant difference in how your company operates or goes after strategic goals. Don’t be afraid to ask for help.

POINT 2:  Create well defined performance goals and measures

Setting goals is easy for some and challenging for others. One method for success in this area is to clearly define your performance goals and make sure that you are able to establish Key Performance Indicators (KPI’s) that will become an excellent tool to monitor and manage your business performance.

POINT 3:  Integrate your strategic plan into financial reporting

Your operations, sales and marketing, and financial strategies should directly impact your financial reporting. It is important to set strategic goals, but often more important to be able to monitor and measure those goals. Strategically designed financial reporting will keep you well informed.

POINT 4:  Prepare realistic action plans and start right away

An effective action plan is one that takes into account time and relevance. We can help you assemble action plans that are simple, organized and online. By the way, there is no time like the present to start planning.