Year End Business Dreams And Realities
Dec 20, 2009
With the New Year approaching, we always think of it as a New Beginning. What does 2010 hold in store for your business? Was 2009 a year of hardships or was it just a year like many others, with successes and struggles and changing plans.
Big Ideas for The New Year should begin with a Plan. Strategic Planning is a necessity for any business and should include Dreaming** Outside the Box. What would your business look like if money or manpower was not an object? Once you can see it you can then determine what it takes to make it happen. Planning your Work and working your Plan is the most effective way to accomplish any task. Once the plan is conceived it can then be shared and others can catch the Spirit. Every business needs a One Year Plan and a Long Range Plan.
Is your business in need of a Turn Around? Is this just a turnaround in profit margins or personnel issues? Or could it be you have heard the words Bankruptcy mentioned yet do not feel that is an option you desire to consider? There are others ways to “skin a cat” so by all means, talk to professionals that will consider differing alternatives to whatever may be your current need. A Business Turn Around can provide for many more years of growth and profits but will take time, determination and integrity. It is certainly worth exploring the options.
Plans to End the Year
Timing strategies are always the Number One Year End item as they land on the Balance Sheet to stay with a business throughout its lifetime:
Think ahead as to what you would like your year-end numbers to represent?
Can you speed up collections to have cash at year-end or pay down
Maybe you need to increase your EBIDA to stay within Bank
Covenants or to apply for a loan in 2010.
Do you need to make additional asset purchases to be eligible for increased tax savings?
Do you need to close that deal so you can move out some inventory and increase year-end Receivables?
If you are on a cash basis, do you need to pay some expenses to reduce your income and thus reduce your income tax debt?
If you need to take a distribution from company earnings or an early distribution from a retirement account, consider the tax implications. It may be that you should take some in 2009 and wait until early 2010 to take the remainder. You may need to wait until 2010 entirely, depending on your current level of income.
….. Federal and state income taxes are considered paid timely if all have been paid no later than 12/31/2009 through W2 earnings. This allows for large amounts of tax dollars to be paid at one time yet still be considered paid on time. This is only for those paying through W2 earnings. For workers that have only 1099 income, quarterly estimated payments are considered timely if paid throughout
the year. If there are large variances in earnings, these calculations can be adjusted and prorated by schedule. Talk to an expert for more details.
Planning can improve your Future!
**John C. Maxwell; Put Your Dream to the Test – 10 Questions to Help You See It and Seize It; Thomas Nelson, Inc. 2009