If you’re a small business owner, early to mid-autumn is the time to start thinking about how to prepare for year end. Getting everything in order now is the best way to ensure that you get your year-end to-do list handled well before the clock run’s out on New Year’s Eve.
As a Professional Employer Organization (PEO), we help small businesses take care of their HR needs through outsourced HR. We know that year-end is a busy time of year and we take a big weight off of small business owners’ shoulders by handling tasks on business’ end-of-year HR checklists.
Small Business Tips to Prepare for Year End
Here are some small business tips to get prepared for year-end:
- Plan for year-end payrolls
If you pay your employees by direct deposit, it’s a good time to look at the calendar to check for any pay days that will fall on a holiday in November and December. Knowing bank holidays in advance allows businesses to adjust payroll accordingly (typically by paying employees a day earlier). If you are thinking about offering holiday pay or year-end bonuses, remember that this extra pay must be handled like any other paycheck and have appropriate payroll taxes withheld.
2. Consider outsourcing your payroll
Has your business grown in the last year? Are you feeling overwhelmed with payroll requirements? The end of the year is a great time to start looking for payroll help! When you choose a payroll provider in early fall, they can work on end-of-year reporting and help you get prepared early for tax season. Many payroll specialists prepare employee tax forms such as W-2s and 1099-NECs to get businesses ready for tax season.
3. Have employees review their W-4 Forms
Because you will need each employee to have an accurate Form W-4 to create their W-2, it’s a good idea to have them review name and contact information on their forms now so you’ll be ready to go when tax season rolls around.
4. Review your financial health
While it’s important to review the state of your cash flow and overall financial health more than once a year, the end of the year is an important time to do it. According to Harvard Business School, there are four important documents to review to get a sense of your business’ financial standing:
- Balance sheet
- Income statement
- Cash flow statement
- Financial Ratio Analysis
The data provided in these reports can help business owners make strategic decisions that will set the business up to grow and thrive. If your business is in a good position, this is also an opportunity to provide bonuses or increase contributions to 401(k) accounts.
5. Focus on employee engagement
Employee burnout is a major problem for businesses in 2022, which is why employers should take these last few months of the year to focus on employee engagement. Instead of performance reviews, ask employees how they are doing and encourage them to share ideas about how they would improve their work environment. Consider doing things that make employees feel valued, such as hosting a holiday party, paying bonuses, profit sharing, or offering additional paid time off to spend with friends and family.
The end of the year is almost here! We hope these tips are a helpful start to your year-end planning. If you’re feeling overwhelmed, we suggest tackling one task a week and checking tasks off a list once they are completed.
Need more HR support as your business grows? We’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are compliant with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long and changes happen). When choosing a PEO to partner with, there are many things to consider including cost, services, and technology solutions.
With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet, or phone. We can truly improve your employees’ work benefits while freeing you up to operate your business.
What are you waiting for? Companies that partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!