Planning for an Awesome 2013

For businesses with fiscal years that coincide with the calendar year, the slate of revenues and expenses will be wiped clean on New Year’s Day.  Starting with a clean slate gives us a chance to reflect on our 2012 results before we enter 2013 and experience the hope that comes with a new year.  

Hindsight is always valuable, and we can learn important lessons from our past mistakes that we can now more objectively look back on.  We can take those lessons and incorporate them into our plans for the new year so that we can continue to learn, grow, and prosper.  

To create your plans for an awesome 2013, here is a list of questions and documents to consider in your business.

Revenue Plan

We can make budgeting more fun by looking at the revenue side first.

• Are you happy with your 2012 revenue levels?
• What new product or service lines can you roll out in 2013?
• Are there any product or service lines you should close in 2013?
• Should you raise prices?

A revenue plan is useful because it can feed into your annual budget as well as drive your marketing plans.

Staffing Plan

Business is more fun when you have the right team to support your vision.

• Is your current team sufficient to support your business goals for 2013?
• In what areas do you need more help?  Should you hire or outsource?
• Are there any team members that are not pulling their weight?
• Was there a turnover that you would have rather not had?  How can you retain your best talent?

Master Budget

Your revenue plan and staffing plan can feed into your master budget, which can be loaded into your accounting system.  Tracking actuals against plan and prior year numbers will help you determine how you’re staying on track throughout the year.

Special Projects Plan

What special projects should you consider for 2013?  This might include a move, new fixed assets, or replacing systems and processes that you are outgrowing.

Disaster Recovery Plan

Each year, we watch the news and see people and businesses that were affected by extreme weather events, fires, theft, or other disaster.  Are you protected?

• Is all of your data backed up to a remote location that is away from your local area?
• Do you have the necessary insurance coverage for all areas of your business?
• Are you comfortable with the risks you are taking in business and are you prepared for the worst-case consequences of those risks?  If not, take action to reduce your risks.  


Planning for Awesome

Planning helps you become more successful, and it reduces the risks of doing business.  There are many more types of plans, and it’s up to you to decide which ones will benefit your business.  If we can help out in any way, please reach out and give us a call.

Your Year-End "To Do" List

It’s almost the end of the year, and although the holidays are coming, there are a few tasks you need to address before year end. Getting your financials in order now will start you off right for the New Year. A Step Up wishes you a very merry holiday season and a prosperous 2013.

1. Invoice your clients for all outstanding time and expenses. You want to be sure that invoices are sent for all work done during the year, and many of your customers will want to pay you for this work now to lower their tax liability. Make it easy for them to do so! Receiving payments at the end of the year also gives a cash basis business a bit of flexibility. You can count the income in this year by using the check date on the payment in QuickBooks. Or move it to next year by using the date you received or deposited it (be sure this is actually in 2013).

2. Review your open receivables and determine if any should be sent to an outside collection agency for assistance or if they are un-collectible. If you are on an accrual basis, you can write these off as bad debts and lower your business profit totals. Even if you are cash basis, getting these off your books gives you a truer picture of what is outstanding for the new year.

3. Reconcile all bank accounts, credit card accounts and loan accounts. You need accurate balances to make informed decisions for the future. Ensuring that the totals of your accounts match the bank also improves the likelihood that you haven’t missed any deductible expenses.

4. Prepare a budget for next year. Review this year’s reports and set a plan for realistic growth next year. What income categories were profitable? What expenses can be trimmed? Set a plan for how you will increase revenue and lower expenses in the coming months. You can also enter this information into QuickBooks, and then you can compare how you are actually doing against your plan from month to month.

5. Double-check all employee addresses and social security numbers. Make sure that employee paycheck names and Social Security numbers match their SS cards and W-4 data. Remind employees to submit new W-4 forms if there has been a change in their filing status due to marriage, divorce or dependents (birth, adoption, child turning 21), or if they want to retain their federal ‘exempt’ status.

6. Ask your payroll service (if you use one) for a W-2 adjustment run, or run a Payroll Summary report before closing out 2012 to verify and correct:
- excess SS withheld
- additional amounts paid to employees that must be captured on W-2s, including relocation expense reimbursements, personal use of company vehicles, company-paid educational assistance and other taxable items that were paid outside of the payroll system;
- manual or voided paychecks not in your system;

7. Review 2012 paychecks outstanding more than two pay periods so you have time to void and reissue in time for 2012 W-2s.

8. Get address and social security numbers for all 1099 contractors. Send W-9 forms to obtain this information if needed. Review all names, addresses and tax ID information as well as the categories of payments made for accuracy.

9. Meet with your CPA to review your preliminary totals. There are things you can do now to reduce your business tax liability, such as contributing to a retirement plan or paying employee bonuses, but they often must be done before December 31st. It also may or may not be a good idea to make a large equipment purchase at this time. Depreciation deductions are not as favorable if the majority of the year’s purchases were made in the last quarter. Corporations will need to calculate and pay out shareholder distributions by the end of the year. Talk to your CPA about your tax strategy for this year. Of course, you will want to have your records in order and caught up to reap the most benefits from your meeting.

A Step Up Bookkeeping is available for assistance with getting your record-keeping caught up. Give us a call for a no-obligation consultation at 603-679-2022.