When should you start planning for your year-end?

hourglass planning for my year-end profit

You feel anxious about your taxes. You want to know ahead of time what your profit will be for the year. And you want to plan the strategy for your profit. When should you even start planning for your year-end?

The good news is that by planning ahead you can both estimate and control your profit for the year. To have sufficient time to strategize and take action, you need to begin planning early.

Equip yourself with the facts

Working with the facts, not fiction, is needed. In order to have true facts, your bookkeeping records need to be accurate and up-to-date.  

When your bookkeeping is kept current throughout the year, you will not need to scramble at the last minute to catch things up.  You will know where things stand as of right now.  

What if your books are behind?  We can bring your bookkeeping up-to-date so that you’ll be ready to begin your year-end planning.

Take action early

Planning for year-end is all about timing.  

You need to begin your planning well before the year ends.  If you wait too long your options will be limited. If you wait until the year is over there is very little, if anything,  that can be done to change your profit.

The best decisions are rarely made when you are under pressure. Waiting until the last days or week to take action is not in your best interest. Taking action early will give you time to make good decisions.

Don’t make this mistake

Have you ever made a big purchase under pressure and later had regrets?  

We work with many in the construction industry.  Often, clients have purchased a new vehicle on the last day of their fiscal year. Since the purchase was rushed, our client did not end up with the truck they really needed. They could have saved themselves a lot of heartache if they had not waited until the last minute to buy.

We don’t want you to have regrets. You will be much better off if you start your planning process early.

Planning ahead is the first step to controlling your profit for the year. You will have sufficient time to strategize and take action. We generally recommend beginning your planning two to three months before the fiscal year-end to allow you adequate time for your planning.

What if you don’t know where to start? Here are two more helpful articles for you to read:

Prepare for Year End: Have Accurate Records

Prepare for Year End: Talk with your Tax Professional