11/ 22/ 2005
by Vicki Gerson
In less than six weeks, we’ll turn the calendar on new year. What exactly does that mean for a small-business owner? Even though your daily routine probably won’t change, maybe you should consider an end-of-the-year checkup.
The United States Chamber of Commerce recommends that business owners pay attention to two important areas of their business. First, be sure that you have met all tax obligations this year. This means checking to see if you have fulfilled all payroll taxes, sales taxes, state tax and federal income tax obligations. If you’ve made a mistake or haven’t paid a tax, you’ll have to pay a penalty.
Though you should be doing this throughout the year, pay special attention to all financial statements that you receive from the bank as well as income and balance sheets. Run a cost/volume/profit analysis to get the true operation costs of running your business. If necessary, let your bookkeeper or accountant help you with this job.
Other steps you should take include:
Review your forms
Review the forms and documents you use at your business. Some of them may be out-of-date or shouldn’t be used anymore. If you’re paying printing costs for forms you no longer use or use infrequently, don’t print them. Furthermore, if you have changed area codes or phone numbers or have added an e-mail address or a Web site, be sure your letterhead and other important documents and forms contain the correct information.
Review your business management services
Decide if you’re happy with your accountant, bookkeeper or lawyer. If you’re not satisfied, ask for recommendations and conduct interviews to find a professional to take their place in January.
Another area to review is the fee you pay for credit card payments (if applicable). See if you can find a less expensive service to process these payments. Determine if you can reduce your expenses for telephone and Internet services.
Review health insurance expenses
Whether your employees are insured or only you and your family, start paying attention to health insurance options. Don’t assume that you have no choice. What alternatives do you have to keep these costs down? Investigate and interview insurance companies and agents. But be careful. Read your policy carefully, including the fine print.
Review your technology needs
If you have a Web site, decide if it needs to be updated. Most likely, you have additional information that can now be added to your site. It’s also possible that your site was created two or more years ago and is now out-of-date. If either is the case, you might consider contacting a Web copy writer and Web designer to help you update your site. This is also a good time to determine if your company needs new software, hardware or has any other technology needs. It might be beneficial to get bids now, so you can make your changes at the start of the year.
The result
A small-business owner has so many things to consider when planning ahead for the new year. After reading through this checklist, you may think of a dozen other things that need to be updated or changed. Let this basic guide be your starting point as your move forward. Keep the results as a reminder of what you want to correct or change for next year.
