December is a great time for tax planning, but it is also a great time to sit down and think about what went right (and wrong) with your business in 2011. Here are some questions I compiled from a few places around the web to help explore that topic and maybe push you toward a prosperous 2012:
- Were sales up or down compared to the past 3-5 years? Why?
- Were profits up or down for that same period? Why?
- Look back at the goals you set at the beginning of the year – which ones did you accomplish? If you didn’t set any goals, now is a great time to do that for 2012.
- Did you stick to budget in 2011? What about 2012?
- Is your business worth more now than it was last year? Entrepreneurs work hard – taking a look at your balance sheet will give you a snapshot of how the business changed over time.
- How has your industry changed over the past year? Are there new risks or opportunities? Is your company nimble enough to take advantage?
If you’re having trouble answering any of these questions, it may be time to re-evaluate your accounting system. Is it providing the information you need to make key decisions or do you simply see it as a necessary evil you maintain for compliance purposes?
Have you talked to your insurance agent lately and evaluated whether or not you are adequately covered?
Have you talked to your banker lately to see if they have any input?
Have you checked your credit report – it is free. Simply go to www.annualcreditreport.com.
Maybe most important – have you talked to your customers about the value you provide them? Sometimes simply talking to a few key people can open up new opportunities.
I’d love to hear in the comments or via email how you take stock in what has happened in the past year. If you have questions or would like to discuss it more in depth, please email me at kevinmccoy.cpa (at) gmail (dot) com and we’ll set up a time to chat.
