- You made a profit.
Obviously, this is the primary reason millions of people start businesses. The reality however is that it often takes time to generate a profit. If your accounting is organized, by the time December rolls around you should have a solid idea of your net income. With a smile on your face you can plan year end wisely and sail into January confident of the year ahead.
- Your accounting department is streamlined.
Throughout the year business owners often wear different hats, following up with the accounting department on why there are issues with the financial statements sometimes gets pushed aside. If you have continued to grow your business and managed your staff efficiently (lots of hats to wear), your financial reports will be top notch at the end of December. With January tax deadlines such as 1099s and W2s this gives owners peace of mind deadlines will be met with accuracy. That’s something to smile about!
- Wisely allotted time for year-end tax planning.
Almost as good as generating a profit is making wise decisions at year-end. In order to make the most out of your deductions year-end tax planning takes place. There is a small window of time where you can accurately implement your tax planning strategies. What a significant difference a small amount of planning can make for a business. Often this takes business owners years to really implement, better late than never. Remember if your accounting is not fully updated, tax planning just doesn’t work.