It’s a new year, which means it’s time to start planning for your business finances in 2023.
In the business world, proper financial planning is a major factor in determining success. From reducing risk to increasing profit margins, having a well-thought-out financial plan can make all the difference.
Although you can make a financial plan yourself, it’s best to do so with the expert advice of a financial planner who understands the complexities of business tax laws. At Cg, we serve businesses of all sizes with multifaceted skills including business accounting and financial consulting.
To help you get started, we’ve put together this financial planning checklist for businesses in 2023.
Top 5 Tips for Creating Your Financial Planning Checklist
#1. Review your current financial position
Before you start planning for the rest of 2023, it’s important to review your current financial situation, based on the final quarter of 2022.
Start by taking a clear look at your income, expenses, and assets, and be sure to know the exact figures for each area to help inform your planning decisions.
#2. Set realistic financial goals for your business
Having clear and realistic financial goals is essential for any business. Ask yourself what you want to achieve financially in 2023 and how you can potentially achieve these aims.
Perhaps you want to increase sales, reduce debt, or increase profits. Whatever they may be, set clearly defined and measurable goals with a detailed plan of how you will achieve them.
#3. Get ahead of tax season by planning your taxes early
One of the biggest pitfalls businesses can fall into is failing to plan for taxes early. The best way to avoid this is to make sure documentation is properly filed away once finished, so that you don’t have to search for it all at once.
To make the process for the 2023 tax season easier, be sure to consult a qualified tax professional to help you navigate the tax complexities inherent in your specific business.
#4. Create a budget and stick to it
Creating a budget and sticking to it is essential to financial planning. A budget helps you stay on top of your finances by ensuring you’re not overspending or under-budgeting.
When creating your budget, remember to factor in all the necessary expenses you’ll need to cover. This includes payroll, rent, insurance, and other costs associated with running a business.
#5. Make a plan to pay down debt
If your business has debt, it is time to start planning how you will pay it off. Creating a debt-payoff plan is key to improving your finances in 2023.
For example, you can decide to completely pay off smaller debts first, then use the amount you save yourself monthly by getting rid of these debts to make bigger and bigger payments on larger loans. Other ideas may include reviewing your overhead so you can determine how to free up money to pay down debts, and looking into debt restructuring or consolidation options with lenders. All of these steps can be taken most effectively with the advice of a financial planner.
By following these tips, you’ll be well on your way to creating a successful financial plan in 2023. And with the help of a qualified financial planner, you can ensure that your business is on track and ready to take on the future.
What is a financial consulting firm?
A financial consulting firm is a company that provides financial advice and services to individuals and businesses on investing, tax planning, financial planning, budgeting, and other financial decisions.
Cg’s Financial Advisory team is the perfect partner to help you with your 2023 financial planning. With over a century of financial planning experience, Cg’s Financial Advisory team has the know-how to provide financial consulting services tailored to your business needs and future goals
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- The three types of financial statements and how to use them to make better business decisions