The start of a new year is always an exciting time. It’s a blank slate, full of promise for the amazing year ahead. As a small business owner, the actions you take (or don’t take!) at the start of the year have a big impact on how your business flourishes throughout the year.
That’s why now is the perfect time to set your business up for financial success in 2023. Whether you’re a long-time business owner or a brand-new entrepreneur, these are my top three strategies to lay a solid foundation for your business going forward.
Establish the Correct Business Structures
You are likely aware that your business is subject to legal and tax considerations. But did you know that these are determined largely by the type of business entity?
Most small business owners set up their company as a sole proprietorship, partnership, C Corporation, S Corporation, or Limited Liability Company (LLC). Each type of business entity has different requirements and regulations in terms of set-up fees, taxes, benefits, liabilities, and risks.
You may have started as a sole proprietorship (that’s the default if you’re making money but haven’t registered a business!) but as your business grows, you may consider shifting to a different business structure.
Ensuring that you have chosen the correct business structure for your business can save you a lot of stress, hassle, and paperwork – and set you up for financial success in 2023.
Start by reviewing your financial statements from the previous year. Evaluate your total profits and losses. This can be helpful to assess whether your chosen business entity matches the level of risk and liabilities you are willing to take on and/or is beneficial from a tax perspective.
Not sure if your business structure is appropriate for your business or considering changing your business entity? Consult with your accountant or tax specialist!
Book your consultation call with Exceptional Tax Services if you need help reviewing your business structure to set yourself up for success in 2023!
Get Your Business Organized for Financial Success
Time and time again I have seen clients who are doing incredible things in their business – delivering top-notch service to their clients, marketing their businesses, growing a team of high performers, the list goes on!
But when it comes to their taxes and bookkeeping – everything is a mess.
Unreconciled books, missing receipts and invoices, bank statements that don’t match any financial statements… yikes.
If you are ready to embrace financial success in the new year, getting your business organized behind the scenes is a must.
Review Your 2022 Finances & Prepare for Tax Filing Season
Your final tax return for 2022 isn’t due till April, but the new year is the perfect time to get all of your bookkeeping for the year in order. We’re in the midst of tax filing season, so make sure you are ready to file your tax returns on time. Tip: Look out for these ten IRS triggers to avoid as you’re preparing to file your taxes!
Here is a handy checklist going into tax season that will help make filing your tax return that much easier.
If this seems like an overwhelming task, consider outsourcing it. There’s no shame in getting help with your books! Instead of sleepless nights and frantic paper shuffling, working with a tax specialist will save you time and money while giving you confidence that your taxes are in good hands.
At Exceptional Tax Services, we offer a VIP Week that will ease the stress of getting your business finances organized and set you up for a year of worry-free accounting!
Implement Systems for Financial Success in 2023
Getting your business organized isn’t just about sorting out your paperwork from last year. It’s also about implementing systems that will help you stay on top of your books for the year ahead.
Putting into place sound accounting and bookkeeping processes like keeping your business and personal expenses separate and regularly reconciling your books. Take time to review your tax obligations and ensure that you’re making the correct quarterly estimated tax payments.
Mark tax return filing deadlines in your calendar so you never miss a deadline – there are stiff penalties for late filing and payment!
Work on Your Mindset for Financial Success
Running a thriving business is not as simple as just serving your clients and making money. To truly be a successful business owner, you need to have the right mindset.
Henry Ford famously once said, “Whether you think you can, or you think you can’t – you’re right.” And this applies to running your own business too.
Whether you think your business is going to flourish and become a multi-million-dollar business one day, or you think you won’t be able to make any sales or find enough clients – that is what you will call into your business.
Working on your mindset is an important (yet often overlooked!) part of creating your financial success. You can have all your finances in order, but if your mindset is not right, it can slow your growth. Stepping into your role as CEO is your key to wealth, freedom, and time back.
Start by asking yourself:
- Do you believe that your business is going to be financially successful in 2023?
- Do you behave like a CEO who thinks strategically about decisions in your business?
- What do you need to do to become the CEO of your business?
Discovering your money personality and understanding how to leverage it, working through limiting beliefs, and overcoming mindset blocks are ways you can step into the CEO role. Once you fully embrace the idea that you are in control of your business’ success, you can take more strategic decisions and propel your business to greater heights.
If you are ready to step into your role as CEO in 2023 and make it your most successful year yet as an entrepreneur, From Side Hustle to CEO Mini-Course will give you the tools to get started. Learn how to set up a successful business foundation, understand your tax obligations, and get actionable advice you can implement immediately. Get instant access to this free course now.