This time of year is one when many choose to wind down a bit, reflect on the past 12 months, and plan for the new year. In that spirit, the Gnosis accounting team is happy to offer a few quick tips to help our Bermudian small businesses partners close out the year efficiently and confidently:
1. Review your financial statements
Take this time to analyse all key financial statements – your balance sheet, income statements, and cash flow. Understanding where your business stands financially will enable you to identify trends, spot improvements to be made, and create a more impactful and strategic plan for the year ahead.
2. Optimise your tax strategy
Now is the time to ensure you’re taking advantage of available deductions and credits going into the new year, allocating according to your planning goals, and are preparing for the correct taxation. This is especially important as the Bermuda Corporate Income Tax comes into effect in January 2025. Though the new Corporate Income Tax (CIT) is intended to apply mostly to large, multinational corporations it’s still important to know when and how it could affect your business.
3. Assess your toolbox
Financial management can be tricky day-to-day, let alone when you want to do an all- encompassing, year-end assessment. That’s why it’s important to have the right tools at your disposal. Gnosis’ accounting experts leverage Xero because it’s the most efficient, flexible, and customisable accounting software available for our customers. You can read more about why Xero isn’t just the future of accounting, it’s the now in our recent blog.
4. Plan for 2025 cash flow
Review your anticipated expenses, projected income, and possible investments. Set up a cash flow forecast and plan accordingly. You want to plan for enough liquidity that you can not only cover your baseline operating costs but take advantage of any opportunities that might arise as well.
5. Reevaluate business goals and budgets
Revisit (and revise as needed) your macro goals for the business, and make sure it lines up with your financial performance. Use this opportunity to adjust your budget and setrealistic targets. Are you on track to hit all your objectives and partnered with the right providers, or will you need to make a change in 2025?
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Gnosis is Bermuda’s Leading Managed Service Provider Founded in 2018 with the belief that Bermuda businesses deserve market-leading business, accounting and consultancy services with client needs in mind. Gnosis’ expert accountancy team provides a range of short-term and long-term accounting solutions in Bermuda to help power your business.
Our qualified consultants can support your organization through an ever-changing business landscape, from staff departures and maternity cover to additional resources for project work. Our flexible approach ensures you and your team receive the most cost- effective, tailored solution to suit every need. If you’d like to learn more about how we can help support your business’ accounting needs in Bermuda, get in touch with our on-island team today.
