As the end of the year approaches, there are some things your business needs to do to ensure its success in the coming year, whether this has been your first year in business, your 10th, or your 50th. There are many loose ends to tie up before the clock strikes midnight on December 31. Working with a virtual CFO can help ensure that you tied up all loose ends, dot every i, and cross every t so that your company is well prepared for the upcoming 12 months and for success in the years to come. Here’s how a vCFO will help your company get ready for the year’s end.
Follow up on Outstanding Accounts Receivable
The end of the year is the time to get your accounts receivable in order. That includes sending invoices to clients for any work completed in the last weeks of the year and following up on invoices that are due by the end of the month. It also means following up with clients who might be late on paying to see what is going on. In some cases, it could be that a client forgot to pay and is willing to make their payment so that they can close out their books for the year, too.
It could also be the case that you need to send certain unpaid invoices to collections or decide to write-off those invoices as unpaid if you don’t expect the client to ever come through. Your vCFO can help you decide which action to take based on your goals and the state of your business.
Make a Plan for Year-End Purchases
Your virtual CFO can help you create a tax strategy that might include making certain purchases before the year runs out. If you buy certain items before the end of the year, such as new computer equipment or new office furniture, you might be able to take advantage of a tax deduction on your tax return in a few months, rather than having to wait another year to deduct those expenses.
Along with purchasing physical items before the end of the year, your virtual CFO might recommend that you purchase intangible items before the calendar year ends. For example, you might decide to renew certain services or subscriptions months in advance so that you can deduct the cost of those expenses from your current year’s tax return.
Start Mapping Out Next Year’s Budget
It’s never too early to start planning your budget for the year to come and your virtual CFO can guide you through the process. Your virtual CFO can examine your current year’s budget and help you discover areas where you can make changes or cut back to save money on expenses. They can also help you determine how to increase your income in the coming year and give you tips for doing so, such as by expanding into a new market or by offering a new product. In some cases, pivoting or trying something entirely new might be a way to boost your budget in the year to come.
Put Together a Strategic Plan for the New Year
If your company is interested in achieving sustainable, profitable growth, it needs to have a plan in place to do so. Your virtual CFO will work with you to create a strategic plan for the year to come and for subsequent years. They can use information from the previous 12 months to help you develop a strategy and to create a plan that will let you reach your goals and move forward as a business.
The end of the year is the ideal time to reflect and to learn. You can examine what occurred over the past 12 months to see what worked and what didn’t. New Direction Capital’s team of virtual CFOs can serve as outside eyes, helping your business see where it struggled and where it did well. They can then use that information to help you create a path toward growth and success in the year to come. To learn more, contact us today.