The end of the year is the perfect time to review your finances and prepare a budget moving forward. Coincidentally, it is also an extremely busy time of the year for businesses and individuals, which isn’t conducive to taking on a financial process, especially one that has the tendency to inspire procrastination. Mark’s Bookkeeping Services will do the leg work for you by setting up a personalized process to stay on a budget, and keep your finances on track. If you want to get ahead on year-end financial planning on your own, take a look at the following advice from an expert bookkeeping firm.
Start by adding up all your income and separating it into categories: dividends, interest received, etc. Then add your expenses and divide them into one of two categories: fixed expenses and discretionary expenses. Review all financial documentation, from receipts to canceled checks. You should always include salaries, fringe, benefits, supplies, equipment and other expenses/income.
With the total of both income and expenses you’ve calculated, you can evaluate your budget. Now you're prepared to develop financial goals for the coming year. In the end, your annual budget should demonstrate projected expenses, projected income, the interaction of expenses and income, and adjustments that reflect the reality of your budget during the year.
Small businesses in particular should be wary of this year's tax changes and coming changes in 2013. Bolster your budget cushion with deductibles like charitable giving and holiday parties before the end of the year. Be detail oriented and follow through with even the small tax write-offs your business may quality for. For individuals, the newest considerations come from the Affordable Care Act. Avoid penalties in 2014 by being diligent now!
By preparing your annual budget, you are encouraging effective ways of dealing with money issues. Done properly, you will be able to execute your goals more easily. The overarching goal is to show what you need to do to keep you or your business from spending more than they can afford. Mark’s Bookkeeping Services makes recording your business accurately easy so you can avoid any unwelcome surprises. Let the bookkeeping service professional's help you reach your goals. Call (212) 243-5757 for professional advice on year-end financial accounting.