Your 5-Point Year-End Small Business Checkup

Check these items off your list before 2022 wraps up.

Owning a small business means having to deal with many different tasks. And as the end of 2022 approaches, here are a few key items it pays to put on your list.

1. Make sure your books are in order

It's important to close out the year with books that are nice and reconciled. Now's the time to make sure you have receipts for all purchases so you know what write-offs to claim when you file your small business taxes. You should also know the status of all outstanding invoices and make sure you're on top of any bills your business is on the hook for. Getting paid on certain items before the end of the year could impact your tax situation.

2. Assess your staffing needs

The end of the year is a good time to assess your staff and make sure you have the help you need -- and also to make sure you're not overdoing it on headcount. Assess each employee individually to make sure they're adding the value you're paying for, and to make sure you really need the help. You might have a committed marketing assistant who works hard. But if there's not enough work to keep that person busy for 40 hours a week, then you may need to make the hard choice of cutting their hours.

3. Make a plan for year-end bonuses

Showing your employees you appreciate their efforts is a great way to retain talent. If you're financially able to, it pays to consider giving out bonuses at the end of the year to your employees who have gone above and beyond. Take a look at your checking account and see what bonuses you can swing. And also, decide if you'll give them out ahead of the holidays (so your employees can use that money to cover holiday expenses) or not.

4. Figure out if you can afford raises

Inflation has been driving living costs upward, and you may have employees who are struggling to make ends meet because of that. And so now's a good time to see if you can swing a series of raises for the new year. In this regard, you have options. You could issue merit raises based on your employees' performance, or you can try to give a general cost-of-living raise, where everyone on your staff gets the same pay increase percentage-wise.

5. Map out goals for 2023

Maybe you want to open a second location for your business next year. Or maybe you want to introduce a new product or service. Now's a good time to list some goals -- and make a plan for achieving them. That includes running the numbers behind each endeavor.

The end of the year is a great time to do an assessment of your small business, evaluate your staff, and work on compensation. There's still time left before 2022 wraps up, but don't wait to tackle these important tasks. Instead, start addressing them now.