A proper year-end financial review doesn't have to take days. Here's how to conduct a thorough review in 90 minutes that could save your business thousands in the coming year.

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Revenue Review: First 25 Minutes

Start with your income analysis. Pull up your total revenue figures and compare them to last year's numbers. Look for patterns in your busy and slow seasons. Understanding these patterns helps you plan better for the coming year.

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Check your accounts receivable. Make a list of overdue payments that need immediate attention. The end of the year is your last chance to collect aging receivables before they become serious problems. If any customers consistently pay late, you might need to adjust your payment terms with them.

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Expense Analysis: Next 25 Minutes

Review your major expense categories. Compare them to both last year's numbers and your budget. Look for expenses that have crept up without you noticing. Small monthly increases can add up to significant amounts over a year.

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Pay special attention to your variable costs. Are your profit margins holding steady? Or are increasing expenses eating into your profits? This analysis often reveals opportunities for how to cut costs in the business in the coming year.

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Compliance Check: 15 Minutes

Verify that all your required filings are up to date. Check your business licenses, insurance policies, and any industry-specific certifications. Mark renewal dates on your calendar for the coming year. Missing renewals can lead to costly penalties or coverage gaps.

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Make sure you have all necessary documentation for tax filing. Create a checklist of required forms and reports. Getting organized now makes tax time much less stressful and helps ensure you don't miss any deductions.

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Planning Session: Final 25 Minutes

Use your findings to create a basic financial plan for the coming year. Set realistic revenue goals based on this year's performance. Plan for known expenses and create contingencies for potential cost increases.

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Identify specific areas where you can improve financially. Do you need better expense tracking? Tighter collections procedures? Regular pricing reviews? Write down these action items while they're fresh in your mind.

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Implementation Strategy

Break down your financial goals into monthly targets. This makes them more manageable and easier to track. Create simple systems for monitoring progress throughout the year.

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Schedule regular financial check-ins for the coming year. Monthly reviews help you catch issues early when they're easier to fix. Put these review dates on your calendar now.

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A great book to help you get a handle on business finance is called: Simple Numbers, Straight Talk, Big Profits. Here's what it looks like:

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Success Metrics

Establish clear metrics for measuring financial success. Include both lagging indicators like profit margins and leading indicators like new customer acquisition costs. Knowing what to measure helps you stay on track all year.

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Create a simple dashboard for tracking your most important numbers. This makes regular monitoring easier and helps you spot trends quickly.

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Remember that this review isn't only about looking back; it's about using past performance to build a stronger financial future. Take action on what you've learned, and you'll start the new year with a clear financial roadmap for success.