Five Fall Projects to Refresh Financial Results
As we move into the fall season and the final quarter of the year, it’s a perfect time to commit to a project that will help your business reach the year-end in better shape. Here are five ideas:
1. Back-to-School Time
If payroll expenses are one of the higher costs in your business, then it makes sense to boost your team’s productivity (and maybe your own) by adding continuing education as a September project. Fall is back-to-school time anyway, so it’s a natural time of the year to take a course, read a business book, or even hire an organizer to help get more from your workspace.
If you spend a lot of time managing your email, consider taking a course on Microsoft Outlook® or even Windows; learning a few new keystrokes could save tons of time. If controlling time is the issue, look for a book or a course on time management. Classes are offered at CPCC or another adult education center such as The Employers Association in Charlotte.
2. A Garage Sale for Your Business
Does your business carry inventory? If so, take a look at which items are slow-moving and sell them at reduced prices. We can help figure out what’s moving slowly, and might even help you save on taxes, too. One HVAC client found almost $75,000 of “lost” inventory after purchasing a couple businesses that hadn’t done an accounting in quite a while. This same client was going to throw out two old, dusty circuit breakers until his electrical department manager told him they were brand-new, just dirty and worth $1,400 each!!!
3. Celebrate Your Results
Compare your revenue and income to last year at this time. Is it time for a celebration, or is it time to hunker down and bring in some more sales before winter? With one more quarter to go, there is still time to make any strategy corrections needed. Most financial packages, such as Quickbooks, have relatively easy reports that can be set up to show this year to year comparison. Or call your friendly Lucrum Consulting representative and we’ll be happy to help you with this.
4. Get Ready for Year End
Avoid the time pressure of yearend by getting ready early. Review your balance sheet to make sure your account balances are correct for all transactions entered to date. You will be ahead of the game by getting the bulk of the year reviewed and corrected early.
Also make sure the required documentation is on file from vendors and customers. One example is contract labor: you will need to issue a 1099 to any vendor paid over $600 this year; make sure a W-9 is on file for them. The W-9 form is completed by the vendor and provides the federal identification number needed for your completion of the 1099 at year end. We can help you prepare and obtain this mandatory documentation,.
5. Margin Mastery
If your business has multiple products and services, there may be some items that are far more profitable than others. Breaking these numbers out to calculate profit margins or contribution margins by product or service line can help uncover the areas that are adding the most income to your bottom line. Correspondingly, knowing if there are any items that are losing money will help you take the right action in your business.
Refresh your financials this fall with your favorite idea of these five, or come up with your own fall project to rejuvenate your business.