The Symphony of Business Connectivity
December 2023
Location, Location, Location
December 2023
by Kristy Como Armand
As the end of the year approaches, small business owners are presented with a crucial opportunity to reflect, evaluate, and strategically plan for the upcoming year.
“Conducting a comprehensive end-of-year financial review is not only essential for assessing the past year’s performance, but also for paving the way to a more successful future,” says Aaron LeBoeuf, senior vice president and chief lending officer with Lakeside Bank.
He suggests several key steps for an effective review process:
Reflect on Achievements and Challenges
The end of the year is an ideal time to reflect on your business’s accomplishments and challenges from the past year. Review the goals set for the year that is ending and assess whether they were met. Identify achievements, areas where the business excelled, and the challenges it encountered. This will provide invaluable insights for planning.
Assess Financial Performance
Conduct a thorough review of the business’s financial statement, including income statements, balance sheets, and cash flow statements to gauge the financial health of the company. Look for patterns, trends, and anomalies that can offer a deeper understanding of the business’s financial performance over the past year. Compare the actual financial results against the budget established at the beginning of the year, and identify variances, both positive and negative, and assess the reasons behind them. Understanding these discrepancies can help refine the new year’s goals.
Tax Preparation and Planning
Collaborate with a tax advisor or accountant to assess tax liabilities and optimize tax strategies before the year’s end. Understanding available deductions and planning for tax payments can significantly impact the business’s financial health and bottom line.
Review Debt and Cash Flow
Evaluate the business’s cash flow, debt obligations, and available liquidity. Assess the impact of debt on the business and strategize ways with your banker and accountant to optimize cash flow for future operations, expansions, or investments.
Armed with insights from the financial review, LeBoeuf says you can develop a comprehensive plan for business growth in the upcoming year. “Remember, the business environment is ever-volving. Use the financial review not only to reflect on the past but also to pivot and prepare the business for future challenges and opportunities.”
Visit www.mylksb.bank to learn more about Lakeside’s business banking services.
