The Annual Business Review: A 2020 Update

The Annual Business Review: A 2020 Update
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As we come to the end of 2020, it’s time to reflect on the year and plan for 2021. Let’s take a look at some of our past end-of-year articles and start putting together plans and strategies for the new year. 

The Big Finish to 2020

Last year, we shared our 5 Tips to ending the year on a high note . These five tips still hold in finishing 2020 with a bang. You can also download our handy end of the year Checklist

Here are the 5 tips:

  1. Make sure your form of business still minimizes your tax burden.
  2. Update your business goals.
  3. Do you need to do a pivot, given the changes we’ve seen in 2020?
  4. Get your books in order, so that you can run reports and get your taxes done on time.
  5. Celebrate! Okay, 2020 was rough. We need to wish it a proper farewell.

Update Your Budget for 2021

Updating your budget is a simple exercise. Don’t let it stress you out. Of course, we can take all the stress out of this for you, but updating it yourself is just three steps:

  1. Project your 2021 income
  2. Calculate expected Cost of Goods and Labor associated with that income.
  3. Update your expenses

The key is to do your best to predict changes coming in 2021 based on the 2020 pandemic year. You will likely negotiate some expenses, launch some new (digital) products, and make adjustments to your operations.

Update Your Business Plan for 2021

This article on updating your business plan still holds true. As wacky as 2020 was, implementing sound business practices for 2021 will give you the best chance to do more than survive next year. It’ll lay the foundation for a thriving year.

Here are the key components to updating your business plan:

  1. Review and update your goals.
  2. Update your financial models and budget (see above).
  3. Identify changes in products to match changes in your market and industry.
  4. Create a Sales & Marketing plan. Will that include more digital marketing? Probably.
  5. Look hard at your team and make sure you have the right people doing the right functions.

Final Preparations for 2021: Reduce Those Taxes!

One the one hand, having a big tax bill means your business is profitable. On the other hand, nobody wants to pay more taxes than we need to. That’s why you want to start preparing for your 2020 tax returns. Gather up documentation on expenses and deductions. Get your books updated and reconciled. And set up an appointment with your Tax Advisor!

Get The Help You Need

ASCEND is here to help. Set up a time with us to review your 2020 business plan and put together a winning strategy for 2021. One day, you’ll look back at 2020 with a sign of relief and a sense of pride. Let’s get you there together.