As the final quarter of the year approaches, now is a great time to assess your business performance for the year so far. Here are a few things to consider:

Preparing for Q4: Assess Your Year-to-Date Figures

Review your cash flow, balance sheet, and profit and loss statement.

• Are revenues where you expected them to be?
• Have there been any unforeseen expenses?
• Is cash flow steady?

Dive deep enough into these figures to understand if you’re on track with what you expected for the year or if anything needs to be adjusted.

Preparing for Q4: Organize Your Bookkeeping

Make sure that your records are current and accurate. Reconcile bank accounts, review expense categories, and flag anything that looks off. If you’re behind, now’s a good time to catch up before year-end. Using tools like Quickbooks Online and Dext help ensure the proper flow of financial information throughout the year,

Preparing for Q4: Estimate Your Taxes

With three quarters behind you, you can get a general sense of what your tax situation will look like at year-end. Even a basic estimate can help with cash flow planning, especially if you intend to take advantage of any deductions before the year ends or if you may owe more than you anticipated.

Preparing for Q4: Review Payroll and Compensation

Review employee classifications to make sure they are correct, and evaluate owner compensation tactics to ensure your chosen method (salary vs. dividends) still makes sense for your situation and goals. It may also be easier to consider and plan for year-end bonuses now rather than in December.

Preparing for Q4: Revisit Your Budget

Compare your actual results to your original budget. As the year progresses, you may want to reallocate funds or invest in something that has been put off if funds allow. If you’ve gone over budget, you can gain an understanding of why that happened and how to correct it in the future.

Preparing for Q4: Check Your Tax Filings

Verify that regular filings, including GST and HST, are up to date. Penalties for late filings can be prevented with prompt review. Now is also a good time to determine if your current filing method is still the best choice.

Preparing for Q4: Take Action

Planning for Q4 doesn’t need to be complicated. A few simple reviews like these can make a real difference in how smoothly the end of the year goes.

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