Okay, it's February. The 3rd week of February, in fact. You're already knee-deep in 2017, getting your tax stuff together, creating your first quarter plan on the fly, and…wasn't there something you forgot?
Oh yeah. Your year-end review.
The year-end review is one of those crucial bits of online business that is just small enough to slip through the cracks. The kind we all know we're supposed to do, yet somehow never get around to doing.
And–we can be honest here, right?–maybe you don't even really know how to do one.
Don't worry. That's why we're here.
[Tweet “2017 #Goals: more profit, more pay and way more play. #OnlineBusiness”]Remind Me…What Is a Year-End Review?
To better answer this question, let's talk about what a year-end review isn't…
It's not a pointless formality borrowed from bloated corporate culture.
A year-end review just means asking yourself a few strategic questions about how last year went, questions that yield the insights you need to refine your strategy for the coming year.
You don't need to be a financial expert to interpret your numbers.
You just need to be able to say whether a given number got bigger or smaller, compared to last year. (If only all business accounting was this easy.)
It won't make you feel like a noob.
Business owners who do a year-end review go into the new year feeling confident, equipped and prepared.
[Tweet “Want to take on 2017 with confidence? Here's how…”]Simply put, your year-end review is an opportunity to take a look at how the previous year impacted the five most important numbers in your business. Once you take that look, you can use the information to make great decisions about what to do the same this year, and what to do differently.
Your Year-End Review in 5 Questions
- How much were my costs last year?
- How much did I pay myself last year?
- How much were my expenses last year?
- How well was I prepared for taxes last year?
- How much did I put back in profit last year?
And here in these TBL parts, we like to add a bonus question for good ol' Southern sport!
6. How much was I able to play last year?
Once you've answered these questions, you stack them up against the previous year. The purpose is to see whether each category increased or decreased. If it went up, it's safe to say you could keep doing more of those good things you did last year. If it went down, it's time to rethink and possibly reshape your strategy for this year to ensure your top priorities are met.
We told you it was simple.
The Bottom Line
It's not enough to make goals in terms of “more” and “less.” In other words, “make more money” is not a goal for 2017. Decide what number you want to see shift this year, and create a plan to make that happen.
[Tweet “Decide what number you want to see shift in 2017, then create a plan to make that happen.”]We're always passionate about the needle moving for more profit, more pay and way more play! These financial drivers are how your dream business creates good in your life and in the world too. The pros at The Bottom Line CPA are here to help with your year end review of your business financials.
