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The new year is a good time to conduct a business review

The new year is a good time to conduct a thorough review of your business, with a focus on the previous year’s activities. It may help you plan for and position your business for the year ahead and, in this case, for the potential economic recovery that is to come.

This article recommends starting by focusing on your accomplishments to give yourself a virtual pat on the back. (Read more on this idea here.

Next, here are the steps to follow to give your business a thorough, annual review:

1. Assess your Core Activities (i.e. what you do and who your market is)

2. Conduct a sales and marketing review. An efficient way to do this is to conduct a SWOT analysis—something we often suggest each new business do before starting and when planning for new products/services or new markets. 

3. Evaluate your employees. This is something you should be doing annually anyway.

4. Review your business' finances, including budget, cash flow, profit, borrowing, taxes.

This might be a good time to review your existing business plan and make adjustments or write an entirely new one.  NHSBDC management advisors would be glad to talk with you about your vision and business plan review.  Contact them at the office nearest you:  North Country (444-1053), Keene (358-2602), Seacoast(330-1929), Manchester (624-2000), or Nashua (546-1551).  Be sure to mention that you read about this service in our blog.

Do you make it a point to do an annual review of your business? Write us here with your comments.

Good records will make small business tax-filing easier, of course

The IRS would like to remind you: It's time to organize your records. As a business owner, you should keep any and all documents that may affect your federal income tax return. Keeping well-organize records will help you defend yourself if you are asked to pay additional taxes or just enable you to better answer questions when they arise.

 

Small business owners must keep all employment tax records for at least four years after the tax becomes due or is paid, whichever is later.

 

Examples of documents business owners should keep include:

• Gross receipts: Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC

• Proof of purchases: Canceled checks, cash register tape receipts, credit card sales slips and invoices

• Expense documents: Canceled checks, cash register tapes, account statements, credit card sales slips, invoices and petty cash slips for small cash payments

• Documents to verify your assets: Purchase and sales invoices, real estate closing statements and canceled checks

 

Check out this resource from the IRS on starting a business and keeping records:

Pub 463 at http://www.irs.gov/pub/irs-pdf/p463.pdf

 

The publication is also available on the IRS Web site, IRS.gov or by calling 800-TAX-FORM (800-829-3676)