Taking stock of the year’s successes and misses is something all business owners must do. It’s not fun and it is time consuming, yet without honest reflection and a willingness to make changes you won’t be able to improve and grow. Beyond taking a physical inventory and evaluating financial statements, you should assess the year’s tax payments to determine if you are where you need to be. If you are not sure that you’ve met your tax burden or whether your credits and deductions will offset the impact of taxes on your bottom line, call your CPA. You don’t want to be surprised by a large tax bill and underpayment penalties.
Your CPA can also assist in ensuring your business remains compliant with state and federal laws. Business licenses, permits, and certificates need to be renewed yearly. This year the federal government surprised corporations and LLCs by demanding they file a BOIR, or Beneficial Ownership Information Report online or risk paying a steep penalty. The fine is up to $500 per day in civil penalties for late filing, and up to $10000 in criminal penalties, or up to two years in prison for providing false information. Obviously, any smart business owner wants to avoid fines and penalties at all costs, but you can’t adhere to state or federal laws if you are unaware of changes to requirements. That’s why it’s important to stay in touch base with your CPA regularly throughout the year.
Another way to take stock of financial wins and losses during the year is to assess marketing campaigns and digital platforms. Did you advertise? If so, what was your ad budget? Which campaigns were successful, and which ones missed the mark? By creating a marketing roadmap, you will be able to list the changes that need to be made to your website, social media platforms like Facebook and Instagram, and search engine listings like Google and Bing. Every business owner should include a marketing line item to their yearly budget. An advertising budget, just like taxes, is the cost of doing business. Whereas employee retention can make or break you. Take stock of your team members and turnover rate. Businesses with a high turnover of staff are doing something wrong. Usually, low employee retention is due to a lack of competitive wages and benefits, or a company culture where employees neither feel safe nor trusted. On the other hand, businesses with a high rate of employee retention are blessed to have a team they can count on and who feel loyal to them and can’t imagine working somewhere else. Competitive pay, great benefits, and the simple act of showing employees they are trusted and appreciated can go a long way to improving productivity and a business’s bottom line.