Music Teacher's Helper Blog

As the year draws to a close, most studios will be turning their attention to tax time.  But there’s a lot more you should do before turning the page to 2010.  You’re already reviewing your books and crunching the numbers to get ready for next year.  It’s the perfect time to do a little checkup on where your business has been and where it’s going.  Remember the old adage: “By failing to prepare, you are preparing to fail.”  Here is a checklist of important things you should do before closing out the business year.

1. Get your books in order. While this should go without saying, you’d be surprised by the number of business owners who wait until the very last second to start pulling their financial life together.  Make sure al business expenses have been made and entered into your accounting system as well as final invoices sent out.  Check to be sure all details surrounding payroll (if there multiple teachers in your studio) and your tax and other important papers are organized heading into next year.
2. Don’t forget Uncle Sam. If your business pays quarterly tax estimates, remember that your last payment for 2009 is due by January 15, 2010.  If you don’t pay estimates, you might want to start keeping an eye on your taxes just so there are no big surprises come April.  Doing so could minimize your tax liability by knowing whether or not to purchase deductible business expenses or make large charitable contributions.
3. Review your finances. You’re already cleaning up the books; examine your balance sheet, income and cash flow statements to get an idea of the overall health of your business.  If you want to dig a little deeper, check your business’s total debt ratio and profit margin.  All of this will help you in setting goals and planning for next year.  The more accurate your numbers are, the better you’ll be able to plan for the upcoming year.
4. Client, customer and employee appreciation. Don’t let the year end without showing your appreciation to your best clients and customers.  Mail or personally deliver holiday cards and gifts to those who have helped your business in some way this year.  It doesn’t have to be a lavish gift basket or expensive wine, just something you know they’ll appreciate and remember getting from you as a way to say “thanks.”  And if there are other music teachers in your studio team, don’t forget to thank them as well.  Whether it’s a year-end bonus or a holiday party/dinner to say thank you, make sure your employees know that everything they have done throughout the year did not go unnoticed.
5. Assess equipment and services. Make sure your office equipment, supplies and services like phone and Internet are still meeting your needs.  Do you need to replace your copier or get a faster Internet service for music downloads?  What is the condition of your studio instruments?  Do you need a piano tuning after the holidays?  Determine what needs upgrading, whether it’s musical instruments or computer software, and list out their approximate costs to decide which issues will be addressed before 2010, or after the new year.
6. Check and update all company information. Be sure you have current addresses, phone numbers and emergency contact information from every one of your employees (for multiple teacher studios).  People move and phone numbers change all the time, and often you don’t find out the information you have is wrong until something unexpected happens.  Plus, that information will come in handy in January to make sure 1099s find their way to the right people.
7. Check and update marketing information. If your phone, fax, email and address information correct on everything form your letterhead and directory ads to your website?  If not, you’re making awfully difficult for potential students to locate you.  Test all the links on your website, and make sure any contact or help emails are being delivered to the right people.
8. Plan for next year. It’s hard to get where you want to go if you don’t know how you’re going to get there.  Analyze your business’ strengths, weaknesses, opportunities and threats, and then set goals and develop a business or strategic plan for the coming year.  Establish some milestones to reach along the way to help your achieve and realize these goals.  Make sure all your teachers understand where you business is headed and what they can do to help you reach these goals.

If this was your first year in business, this checklist may take longer for you than others.  Ideally, you’d have time to do this every quarter so December doesn’t completely overwhelm you.  But if you can take care of this general list, plus anything specifically related to your business before the New Year starts, you’ll be able to get 2010 off on the right foot rather than cleaning up last year’s messes.