With the end of the season around the corner for most farmers’ markets, it’s the ideal time to get everything organized for your end-of-year finances.
Ideally, you’ve been managing your time as a market manager and keeping track of your spending by using a budget. Keeping engaged in these processes will make you a better financial planner for the upcoming year, which means more organization and success for your market. Here are four tips to help you handle your end-of-season finances.
1 – Know what to keep and organize your financial documents into categories
You should start retaining anything tax-related for at least three years and keep all monthly account statements until you receive the year-end reconciliation statement. Then, you’ll want to think broadly about the sorts of documents you need to separate in order to organize your finances.
These categories could be:
-Financial management (bank statements, grant records)
-Insurance documents (for the market venue)
-Income tax information (tax returns)
2 – Prepare your budget for next season
This is the perfect time to be looking ahead to next year’s budget. Use what you learn from organizing your finances (tip #1) to fill in the holes. Identify the sources that are draining your money (did you have an advertorial that you paid more for than the income it brought to the market?) and figure out where you’re able to allocate more money (perhaps, you are able to hire someone who will write press releases or help with promoting market initiatives). Click here for more reasons to develop and use a budget.
3 – Simplify financial data for next year
When you’re done organizing the current year’s data, make note of what you did, how long it took and what you still need to learn in order to make the process easier the following year.
4 – Keep your finances organized throughout the year
Remember the categories you developed in tip #1, keep those in mind throughout the year. Separate all the receipts, account statements and other important documents into these folders right away, either on your computer for digital statements, or in an actual filing cabinet for paper documents.
Check out more information on good record keeping and why it’s so important by clicking here, and increase your money-mindset by enrolling in the Ontario Market Manager Certification (OMMC) program.
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