by Will Van Hook
Congratulations! Your taxes are done for 2015…or maybe not yet. Either way, if you have not already started focusing on 2016, now is the time. How are the profits in your practice or business this year?
Let me ask you a few questions:
- If your business hit a roadblock, how comfortable with your cash reserve? Better yet, how is the cash flow in your business as a whole. So many times, growing practitioners or small business owners focus all their attention on the profit and loss statement. Profits are great, but what about cash? Cash is on your balance sheet…that other financial statement. If you are feeling uneasy about the cash flow in your business or your cash reserves, what is your plan for dealing with that issue moving forward?
- How are you doing with paying yourself? Don’t laugh, I am serious. You are your practice’s or business’s number one employee. If you are not paying yourself a fair salary, or at least working your way towards doing so, why not? Do you have a plan to do so?
- How did your accountant help you with managing the 2015 tax bill? If you ended up owing money for 2015, why? Was it because you grew the bottom line in 2015 (good reason) or poor planning with your accountant, who you only saw in December or January (bad reason)? If you received a large refund, do you feel good about the interest free loan you provided the government for the year, while you struggled with operational cash flow day-to-day? If you did not have the cash to pay your taxes, for the good reason above, was the reason the bad reason (see above)?
- How profitable is your business? Revenue is great. Keep growing that top line; however, if most of that top line is not making it to the bottom, why? When is the last time you reviewed your costs, both cost of doing business and overhead? What plan in place do you have to get costs under control in 2016?
Whether you were happy with the tax bill…or not, where do you want to go with your practice or business in 2016? What is your plan for reviewing your cash flow, reigning in profits, and managing the tax bill better this year?
If you want help with any of those questions, find a good accountant to see counsel from…before December.
Will VanHook is a bookkeeper and small business advisor with CFO – Health, a Morrisville, NC based accounting practice with a mission to help wellness centers owners and integrative wellness practitioners succeed and thrive in their businesses, using the Profit First plan. As a Profit First Professional, he provides the information and insights to help practitioners to increase the health and profitability of centers or practices in a sustainable fashion. For more information, or to schedule Will for a presentation for your small business group or association, contact him at (919) 397-3157 or email firstname.lastname@example.org.