It’s hard to believe that we’re nearing the end of 2019. As you prepare your bike shop for the close of the year and the beginning of 2020, we want to share a checklist of things you might need to think about.
Between the upcoming holidays, the pressure of finishing the year in the black, family gatherings, and winter weather – we get it, it’s easy to feel maxed out this time of year. With that in mind, this list will only recommend things we think are truly necessary and worth considering before the year is up. Ready to get started?
3 areas to focus on before the year is up
Planning your finances
Get a quick overview of what might be due for some scrutiny before the end of the year
Your business plan
How did you do? Get some tips on what to reflect on, or what data to gather to start next year growing.
People & Technology
These days, people and data are two aspects your business can’t do without. Below, find some factors to consider at the end of the year.
First, Take a Look at Your Financial Situation
Though it’s not the most fun thing, your financials are the most important way to evaluate your business performance. To finalize your financial reports and see year end performance, you must do a few things first…
Confirm All Documents Are Posted to the System
Make sure all of your receipts, invoices, bills and other documents are keyed into the system. Anything with the year 2019 needs to be in. You don’t want to have to spend precious time next year backdating documents and cross-checking statements. We all know that is a New Year’s nightmare.
Meet with Your Tax Preparer or Accountant
Set up a meeting with your accountant or tax preparer. As you close out the year, there may be things that could benefit you based on your company’s profit/loss, like purchasing equipment, contributing to a retirement savings account, or other financial decisions.
Others do it a few days before or after and back out the difference in sales and inventory receipts. Do what works for you. But be thoughtful, be careful, and most of all – be accurate.
Next, Set Aside Time to Review Goals, Business Plans, and Performance
What’s the point of setting a goal if you don’t follow-up on it? Even if you don’t achieve this year’s goal – taking the time to take stock of how you did helps you do the next best thing: learn. What didn’t you have time to implement? Where could you have made adjustments? Explore below to get an idea of which bullets you should add to your to-do list when it comes to the ‘big picture’ of your business.
Evaluate Your Projections vs. Actuals
Look at your projected financial statements versus your actuals. Were you way off? Why? Should you have been more aggressive in your sales forecasts? Are there expenses there that surprise you? This is an easy and important step in evaluating performance.
Take a Look at your Company and Employee Goals
Did you hit your goals? Sales targets are one thing, but what about efficiency, cash flow, customer reviews, and new customer acquisition?
If you didn’t have set goals, be sure to do so for 2020. Goals help us see opportunities and focus our energy on continuing to adapt. Even something as simple as “3 good reviews a month” is worthwhile.
Revisit your Business Plan
Pull it out of the drawer, dust it off, and take a look at your business plan. Are you continuing to hit your targets? Do you need to revise any sections? Now is the best time to do this.
Finally, Review Your Employees & the Data Your Business Relies On
The end of the year is a natural time to review employee performance and strategize for the coming year.
Employee Reviews & Raises
Every employee should be reviewed at least once a year. They should be evaluated on predetermined metrics and given opportunities for growth. If you approve of an employee’s performance, it is expected to offer at least a cost-of-living raise. But if you can, consider offering more to keep employees happy and hard working.
Employee Bonuses
The end of the year is when you should determine if employees will be receiving bonuses. Often, employers will tell employees what bonus potential they have ahead of time so it is not a surprise or disappointment.
Staffing Changes
The year-end is a good time to evaluate your staffing situation and determine if any changes need to be made. If you need to hire new people, the beginning of the year is a nice time for this. If you’ll be letting employees go, let them know this now.
Be Proactive in Data Management
All too often, staying on top of your computer systems and all the data that’s important to your business isn’t important until there’s a problem. Get ahead of it as soon as you can to make your life easier should system failure occur.
Make sure you are working with your IT specialist to back up all company data at year end. This includes sales receipts, vendor information, customer information, business phone numbers, everything! Anything that’s in a computer system or in your phone should be backed up.
