Believe it or not, Christmas isn’t that far away.
While December can feel like it’s months away, successful business owners know that the second half of the year has a habit of flying by. Before you know it, you’re juggling increased workloads, staff leave, supplier deadlines and year-end planning.
That’s why August is the perfect time to take a step back and review your business.
A few small adjustments now can help you finish the year strongly, reduce unnecessary stress and set yourself up for a successful start to the new year.
Here are seven things every business owner should review before Christmas.
- Review Your Cash Flow
Cash flow is the lifeblood of every business.
As the year progresses, many businesses experience increased expenses, whether it’s ordering additional stock, hiring seasonal staff or preparing for a busy trading period.
Now is the time to ask yourself:
- Do I have enough cash available for the months ahead?
- Are customers paying their invoices on time?
- Are there any large expenses coming up?
- Have I budgeted for tax and superannuation?
A simple cash flow forecast can help identify potential shortfalls before they become a problem.
Planning ahead gives you more options than reacting when money becomes tight.
- Follow Up Outstanding Invoices
One of the quickest ways to improve cash flow is by collecting the money you’ve already earned.
Review your outstanding debtors and identify invoices that are overdue.
Ask yourself:
- Are invoices being sent promptly?
- Are payment terms clear?
- Is someone regularly following up overdue accounts?
- Could payment reminders be automated?
The longer invoices remain unpaid, the harder they often become to collect.
Improving your debtor management now can make a significant difference before the busy Christmas period.
- Review Your Pricing
When was the last time you reviewed your prices?
Many businesses absorb increasing costs without adjusting their pricing.
Expenses such as wages, insurance, fuel, rent and supplier costs continue to rise, but if your prices stay the same, your profit margin gradually shrinks.
Reviewing your pricing doesn’t necessarily mean making large increases.
Sometimes small adjustments are enough to protect profitability while continuing to provide excellent value to your customers.
If you’ve been putting off a pricing review, now is the perfect opportunity.
- Check Your Business Goals
At the beginning of the year, you probably had goals you wanted to achieve.
Now is a great time to check your progress.
Ask yourself:
- Have I achieved what I set out to do?
- What’s working well?
- What needs improvement?
- Are my goals still realistic?
- What do I want to accomplish before the end of the year?
Business goals aren’t meant to sit in a drawer until December.
Reviewing them regularly keeps your business moving in the right direction.
- Review Your Team and Workload
As businesses become busier in the lead-up to Christmas, it’s important to make sure your team has the capacity to manage the workload.
Consider:
- Do we need additional staff?
- Are annual leave requests being planned?
- Is everyone clear on their responsibilities?
- Are there opportunities to improve efficiency?
A little planning now can help avoid unnecessary pressure during one of the busiest times of the year.
- Get Your Bookkeeping Up to Date
Accurate financial records are essential for making good business decisions.
If your bookkeeping is several months behind, you’re making decisions without reliable information.
Take the time to ensure:
- Bank accounts are reconciled.
- Payroll is current.
- Supplier invoices are entered.
- Customer invoices are up to date.
- Financial reports are accurate.
The more current your bookkeeping is, the easier it becomes to understand your business and plan ahead.
- Speak to Your Accountant
One of the biggest mistakes business owners make is waiting until tax time to contact their accountant.
Your accountant can provide valuable advice throughout the year, helping you identify opportunities, improve cash flow and avoid costly surprises.
Now is a great time to discuss:
- Your current financial performance.
- Cash flow projections.
- Business growth plans.
- Equipment purchases.
- Tax planning opportunities.
- Business structure.
A short conversation today could help you make better decisions for the remainder of the year.
Small Changes Can Make a Big Difference
Running a successful business isn’t about making one huge decision.
It’s about consistently making good decisions over time.
By reviewing your cash flow, pricing, bookkeeping, goals and business performance now, you’ll be in a much stronger position as Christmas approaches.
Rather than scrambling to deal with issues in November or December, you’ll already have a plan in place.
That’s the difference proactive planning can make.
Finish the Year Strong
The months leading up to Christmas are often some of the busiest of the year.
Businesses that prepare early are usually the ones that navigate this period with the least stress and the greatest success.
Taking the time to review your business today can help you improve profitability, strengthen cash flow and create a clear plan for the months ahead.
We’re Here to Help
At PLH Accountants, we work alongside business owners throughout the year, helping them understand their numbers, plan ahead and make confident financial decisions.
Whether you need help reviewing your cash flow, preparing for tax, improving profitability or planning your next stage of growth, our team is here to support you.
If you’d like to finish the year on a strong footing, get in touch with PLH Accountants today. Together, we can help your business make the most of the months ahead.