By - December 17, 2024
Categories: Accounting, Bookkeeping, Financial Reports, General
If you’re running a small automotive business, doing a year-end review gives you an accurate picture of your performance over the past twelve months.
The information you collect gives you the opportunity to create a tangible action plan for growth as you enter 2025. While this may seem like a daunting task, it is actually a helpful tool that will set your business up for long-term success.
This blog post will help you conduct an effective yearly review so your automotive business can thrive next year.
Why a Year-End Review is Critical
A yearly review is essential for several reasons:
- You collect data to identify positive and negative patterns within your finances.
- You have an accurate depiction of your yearly growth.
- You have the opportunity to reconcile accounts and address discrepancies as needed.
The financial data you retrieve from your review is the key to setting realistic and achievable goals for the future. Therefore, conduct your year-end review prior to setting your new goals for 2025.
How to Conduct Your Year-End Review
Now that you understand why your review is critical, it’s time to get to work.
This process should take approximately two hours to complete. Since you’re a busy business owner, it helps to schedule your review on the calendar and treat it like a shop appointment. You wouldn’t cancel on a customer, so don’t cancel on your review appointment.
Settle down in a quiet space, turn off your notifications, and dive head-first into your financial records.
For a full list of documents to review, check out this blog post, and be sure to download our free End-of-Year Checklist.
Here are questions to reflect on as you go:
What were your financial goals for your business at the beginning of the year?
Consider the state of your business at the beginning of the year.
Recall your goals and compare them to your 2024 financial data.
Did you meet your financial goals for the year?
Evaluate your progress toward said goals.
Did you meet them, exceed them, or fall short?
Identify why you did or did not achieve your goals this year and reflect on financial data to create a profitable plan moving forward.
What went well this year? What could have been improved?
Numbers don’t lie, which is why it’s important to be informed of your business’s yearly performance.
They are a concrete indicator of what went well and what could have been better.
Create a list for each so you can continue the positive patterns and make improvements as needed.
You’ve completed your review. Now what?
Take a deep breath, pat yourself on the back, and celebrate the completion of another year as an entrepreneur.
Now that you understand your yearly progress, it’s time to set new goals and tackle them intentionally and strategically.
Remember: It’s okay if the past year did not go according to plan. The data from your year-end review will help you stay on track and succeed over the next twelve months.
If you need assistance conducting your year-end review, leave it to the experts. The bookkeepers at Three Rivers Bookkeeping will help you start 2025 off on a clear and organized financial foot. Check out our services here, or contact us to learn more!
