Every year at this time, actually prior to mid-April to get it done on time, we go through the exercise of looking over our numbers for the year. And this exercise always provides fresh insight into our progress, which I find very useful.
Yes, it takes time to gather all the necessary documents and then tally up the various incomes and expenses, and it does require focus as well as finding things.
As a self employed person, each year the process gives me a clear vision of how things are really going.
For example, taking a closer look at one of my expenses revealed that it really was just a minor factor, although when one unexpected expense came up, my initial impression was that it was worse. So this cost will be held to a minimal level and not given more thought.
In another instance, the result I got from one expense was excellent, so this expense is confirmed and will increase.
How much use did I get out of some things in return for what I paid for them? What did they cost this year, compared to previous purchases? Would these be good choices to continue with, drop or change? Looking over expenses has influenced how I buy office supplies and equipment.
Which months of the year were busiest? Quietest? Knowing this helps plan ahead.
Were there things I spent more on that I thought I did? Yes. Was that a good decision? Am I happy with the result? Yes, and it brings other thoughts to mind about what to do with this expense.
Were there other new purchases or events I tried this year? Do I want to continue them?
Like all of you, at times I get impressions about how things are going, but then when I tally the numbers, I may be changing that opinion about what's good and what's not.
I have always felt that it is a good investment to hire a professional to help with this task because they always know about the current status of various changes in tax laws.
And I am grateful that my business is going well and so writing a check to cover what I owe in taxes is something I can do with no problem.
As a self employed person, taking time to focus and do this task, I am using it as a learning experience every spring. By changing my thinking about this task from considering it a drudgery to a fresh insight into my business it is something to look forward to.
It is another perspective on what I have done and how that will influence my plans for the immediate future.
I always love hearing from you, so if you feel like sending me a note, calling or coming to see me, please do!
Have a wonderful day!
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