What now?!

2022 is in the rearview mirror, and if you have a good accounting team, you should be starting to receive your preliminary financial statements. The big question now is, what do you do with this information?

Firstly, share these results with stakeholders. Depending on your business, you may need to share your financial results with stakeholders such as investors, creditors, or board members. Sharing your results can help these stakeholders understand the financial health of your business and can be a vital part of building trust and transparency. You will also need to get this information over to a tax provider so they can start working on your tax return.

But what else?

Some specific actions that small business owners may want to take with their financial results include:

Use the results to create a budget

A budget can help small business owners manage their finances more effectively by setting financial goals and tracking progress towards those goals.

Analyze the results to identify patterns and trends

Understanding how your business's financial performance has changed over time can help you identify areas of strength and weakness and make more informed decisions about allocating your resources.

Compare the results to industry benchmarks

Comparing your financial results to industry benchmarks can help you understand how your business is performing relative to others in your industry and identify areas where you may need to improve.

Use the results to inform your business strategy

Your financial results can be valuable information for shaping your overall business strategy. By identifying areas of strength and weakness, you can make more informed decisions about positioning your business in the market.

Your prior year's result should tell you a story of where you came from and where you are going. Or at least help you make decisions about your future.