As we enter the fourth quarter, the successful entrepreneurs and business owners are starting to work on their strategic budgeting plans and goals. Here is your year-end checklist:
- Budgeting and Forecasting
- Did you create a 2016 budget and subsequent forecasts and are you comparing the budgets and forecasts to your 9-month actuals?
- Is this occurring on a routine, timely basis? Tracking actual performance against a budget will assist business owners in understanding why the business is either exceeding or not meeting the expectations set in place, thus allowing to make real time decisions to improve business performance.
- Cash Flow Management
- Have you established a plan to meet and exceed cash flow expectations? This can be done through setting revenue and profitability expectations, debt and financing relationships, establishing terms with customers and vendors, etc.
- Proactive Tax Planning
- Do you have a proactive tax plan? When are you meeting with your Tax Advisor to review / update 2016 tax strategy? This meeting should be happening before Thanksgiving.
- Thousands can be saved in tax liabilities or current cash flows by developing an appropriate tax planning strategy PRIOR to year-end.
- Employee Compensation Plans
- Are your employee compensation plans aligned with the overall goals of the company? Are there ways to incentivize employees to improve efficiencies to help achieve business goals for 2017?
- Profit-sharing and educating key employees to understand the importance of maintaining or growing gross margins are a couple of examples. Do you know the difference between gross margin and operating margin?
- Open Enrollment
- Open Enrollment through the Health Insurance Marketplace begins on November 1.
- Are you able to renew your health care plan early and save? The Affordable Care Act continues to change and drive up health benefits and proactively talking to your broker of record is step one.
We Can Help
Signature Analytics is a resource that can assist. Signature Analytics provides ongoing fractional finance and accounting support which includes: financial analysis, outsourced CFO services, and business advisory services that help grow and scale businesses. Contact us today to schedule a free consultation.