5 Important Financial Decisions to Review Before the Year Ends

The year-end is a hectic time for businesses. In between striving to maximize profit and preparing reports for the year, there’s a lot that needs to be done.

Getting ready for this busy time beforehand can help streamline processes for your business.

Here are some important financial decisions to review before the year ends:

Tax planning

This is a great way to reduce your tax liability and help your company save some money. Review your tax planning strategies for the year, making sure it’s in time for filing tax returns.

Small businesses in Canada, for example, can collect receipts of business-related purchases to help them reduce tax liability. Charitable donations to registered charities can also help your business earn more tax credits.

Performance of key indicators

There are five main financial indicators all businesses should focus on, these are growth, profitability, leverage, liquidity, and activity. Develop benchmarks for each category so that your employees can work toward achieving the desired growth for your business.

End the year on high profit

With the end of the year swiftly approaching, every company wants to maximize its profits. Even though the end of the year isn’t too far away, it’s enough time to try new tactics to boost your revenue and profits. Newer marketing strategies, discounts, and rewards can help boost the sales and popularity of your business, enhancing profit at the year-end.

Get your financial books in order

Financial reports are essential documents that a business needs to draw up annually. These statements define a company’s financial position for the year. It determines whether the business experienced any growth or not.

The major financial statements for a business include the balance sheet, profit or loss account, and cash flow statement. You can choose to have these drawn up by your team or have it outsourced to experts. Generally, outsourcing the task reduces the chances of window dressing the accounts and lead to greater accuracy.

Plan for the next fiscal year

As an entrepreneur, you always need to be ahead of the game. Planning for the future is the only way to get things done on time for your business. While the end of a fiscal year is important for financial and management reporting, it’s also a time to develop goals and strategies for the next year. Use the information about the current year’s performance to set higher goals for your business and determine milestones you want to achieve in the coming year.

Faber LLP is an accounting firm based in Edmonton, Alberta. With over 20 years of experience in the industry, the firm has worked with many corporate clients in the area. They provide excellent advisory and assurance services too. Get in touch with them to help your organization with tax planning.