Budgets and taxes aren't your only year-end concern. Performing an annual review of key areas ensures your business will always start the New Year off right.

Every year you evaluate your employees, visit your doctor and get your furnace serviced. But do you honor your business in the same way? Whether your organization is established or emerging, it pays to take a break once a year to look at where you've been, where you're going and what adjustments will get you there.

"In the past, businesses have tended to analyze themselves in terms of meeting or exceeding budgets," says Perry Silverman, President of business services provider Silverman, Olson, Thorvilson & Kaufmann Ltd. "That model worked in a simpler time."

To prosper in today's economy, finances are only one consideration, concurs Byron Starns, Minnesota's Chief Deputy Attorney General for over a decade who's now with the Twin Cities law firm of Leonard, Street and Deinard. "It's important to look at where all the arrows go and what affect they have."

"Like anything else, your business isn't static -- it's fluid and changing," points out Scott Thorson, Vice President & Group Leader, Client Services for National City Bank. "Everybody does budgeting and forecasting, but even more vital is the strategic planning around those issues."

Because year-end is traditionally a reflective time, use budget and tax preparation season as an opportunity to examine the following:

Leadership Development

To be ready to meet new challenges, make sure you're improving your leadership skills and cultivating leadership in others. Review existing internal and external education and training options, on-the-job opportunities and mentoring relationships to determine if more or different resources are required.

For you and your key employees, check the "on" vs. "in" ratio. "You have to have people who work "in" the business, which means day-to-day chores, and people who work "on" the business, which is the big picture," Silverman says. "You and your management team should be focusing ‘on' the 20 percent of the work that makes 80 percent of the difference over the long term."

And, your business itself should take a leadership role. "A lot of businesspeople think ‘the law is the law' and there's nothing I can do about it," asserts Starns. "Then, they either do something anyway and risk a lawsuit, or they back away from an opportunity because they think they can't do it. Instead, go to the appropriate legislative body and get a clarification or a special dispensation that allows you to proceed." For the long run it's even cost effective to contribute to industry lobbying efforts.

Customer Relationships

Most businesses receive and respond to customer comments daily. But, a reactive approach is increasingly ineffective. To form mutually-beneficial relationships with customers in today's economy, you must be proactive.

"At least once a year you should systematically, and anonymously, ask customers what specific products, services, features and components they need or want," says Silverman. "Also explore incentives that would increase purchasing or create efficiencies, such as terms, delivery options, or making payments electronically. Include opportunities for open-ended responses so that your customers can give you ideas you might not have thought of."

Business Partnerships

When you're the customer, the question is the same: Do your suppliers take an interest in what's best for your business? "For example, your banker should be a vested-interest partner," Silverman says. "The focus should be on your needs and creating a relationship that helps you grow."

Rather than just providing a certain type of transaction, expect assistance with accomplishing your goals echoes Starns. "Your banker should judge your business based on its qualities -- not just size," he says. "And, they should show a willingness to be flexible and creative instead of saying ‘we never do that.'"

As you evaluate supplier relationships, also think about your scientific, medical or technical needs. "Background and reference check expertise is of particular interest in today's labor market," says Starns. "Medical expertise can include an ‘on call' psychiatrist to handle employee situations instead of turning to the Yellow Pages in a crisis."

Human Resources

Although it's likely that you're constantly evaluating your hiring situation, year-end is the time to consider global HR issues. "Review your recruiting, retention and training efforts for what's working and what's not," says Silverman. "Also, be aware of new laws, such as statutes that make various retirement plan options more beneficial to your employees. And, stay tuned-in to what your employees want -- hot benefits right now are long-term care insurance and personal financial planning."

It's also a good idea to consider who's managing your employee benefits plan, according to Starns . "As your business grows you may need an institution to act as a trustee for your retirement plans," he says. "Along with satisfying your reporting obligations, there are other services a good employee benefits administrator offers, such as personal financial planning for your employees."

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