Financial Management Made Easy

What comes to mind when you hear the term financial management? Maybe it makes you feel anxious or confused. If so, please don’t! Like any other business activity, managing your company’s finances can be broken down into smaller, repeatable, and actionable steps. Taking these steps will erase worries and help ensure that this part of your business runs smoothly.

In fact, if you follow the monthly financial planning checklist below, you’ll likely replace any negative feelings with ones of joy and satisfaction. At the end of every year, you’ll feel confident, knowing that your business finances are under control and right where they need to be. Plus, you’ll rest easy, knowing exactly how to interact with your accountant. So, without further ado, let’s jump in and discuss the financial tasks you should plan to tackle every month.    

January

The first month of the year is the time to review your fourth-quarter financial statements (October – December) for accuracy. In addition, be sure to note and celebrate all your team’s achievements and the company’s overall progress. 

The annual closing of your books also occurs in January. After your accountant completes the closing entries and performs final reconciliations, go through and review all your financial statements for the full year. Then issue 1099s to all your contractors and W-2s to your employees. Finally, make your fourth quarter estimated tax payment. 

February

The month of love! Go ahead and give your financials some lovin’ by compiling all the documents you’ll need to give your tax preparer (they will love you for this too). This is also the best time to start implementing your first-quarter strategy, so your team can achieve the sales goals you defined last year.

Don’t forget to look over January’s financial statements, checking for accuracy and progress. 

March

In blustery March, you’ll want to thoroughly review your company’s tax return and then sign and file it. Remember, a completed tax return in March means one of two things. Either your company is a partnership or an S-Corp (in which case, its taxes are due March 15th) or you’re filing your personal return early. This is great – it’s always nice to be ahead of the game! Also, check over February’s financial statements. 

April

Maybe, just maybe, some flowers are starting to appear! Either way, now’s the time to conduct your first-quarter review (January – March), confirming that all your financial statements are correct and celebrating any wins. Additionally, pay your first quarter estimated taxes by the 15th and start executing your second-quarter sales strategy.

May

Right after you check April’s financial statements to ensure accuracy and to identify any progress, go right ahead and take a vacation! You deserve it!

June

As summer begins in earnest, you’ll want to conduct a year-to-date (YTD) sales review, deciding if any changes to your sales strategy are necessary at this mid-year point. Similarly, examine your taxes and YTD net income to determine if your estimated tax deposit amount needs to be adjusted. Make your estimated second-quarter tax payment by the 15th, and (by now you know the drill!) review last month’s financial statements.

July

After you’re done watching fireworks and eating BBQ, carry out a second-quarter review (April – June), combing through each financial statement. Celebrate all the achievements! Then, begin implementing your third-quarter sales strategy based on the sales goals established at your company’s mid-year strategy session.

August

Go boating! Or hiking if you’re a landlubber. :) Just make sure to check over July’s financial statements for accuracy and progress first.

September

As fall kicks in, schedule a meeting with your tax advisor for a tax planning review. Additionally, determine how much you will contribute to your retirement plan (or set one up if you don’t have one yet). Make your third quarter estimated tax deposit by the 15th, and, of course, make sure to review August’s financial statements.

October

It’s the beginning of the fourth quarter! Carry out a third-quarter review by looking over July – September’s financial statements, checking that they’re correct and noting/celebrating any progress. 

Additionally, begin implementing your fourth-quarter sales strategy to achieve sales goals based on your current strategy and review your pricing (set new prices, begin informing clients, and update your marketing materials with these changes). 

November

This month is an ideal time to hold a sales strategy session during which you create a new sales strategy and goals for the upcoming year. Also, carry out a YTD tax review to decide if you should be making any changes to your estimated tax deposit based on YTD net income.

Oh, and remember to check October’s financial statements for accuracy and progress too! 

December

The last month of the year, be sure to request new W-9 forms from contractors and W-4 forms from employees. Also, issue new W-9s to your clients if your company information has changed at all this past year. Then, after reviewing last month’s financial statements and making your charitable contributions before the 31st, go spend time with your friends and family!

A Final Word from Tuesday P. Brooks, Owner of AJOY

There you have it – financial management broken down by month so you know just what to do and when! For a more streamlined version of this checklist, please refer to AJOY’s Monthly Financial Planning Meetings Calendar. So, no more flying by the seat of your pants when it comes to your company’s finances and engaging with your accountant and/or tax professional! Commit to the above schedule, and it’ll be smooth sailing from here on out!