A challenging year is coming to an end, perhaps an atypical one for your company, one of economic recovery after the pandemic and one that has surely left your company with hundreds of lessons learned and new strengths.
With these new capabilities, your plan to start the new year will have that differentiating touch to make your company stand out in its segment. Here are the 4 most important steps:
1. Analyze your current financial situation.
2. Set your goals for the next year.
3. Create a global budget for your strategy.
4. Plan the periodic review of your results.
Surely you already have it clear and it was a fundamental part of your results at the end of the year. However, it will be the source of information to start this exercise.
Have it at hand:
– The net worth, that is, what the company has and how it has obtained it. Assets and liabilities are evidenced there.
– Payment capacity. Check whether short-term debts can be paid comfortably, without compromising the company’s liquidity.
You must already have many ideas of what you want, maybe something that is pending to be done, maybe your collaborators have expressed some needs or you can find a starting point in the requests or suggestions of your customers.
Buying machinery, remodeling a point of sale, starting a digital marketing strategy, investing in training or increasing your inventory are some of the strategies you can think of.
Define from now on the dates or stages in which you expect to analyze the results. Having this planning will be very useful to avoid mistakes, anticipate situations, make changes if required or set new challenges.
You will discover that this stage of financial planning will also translate into economic relief.
Not taking into account unforeseen expenses
This is about being proactive and taking into account that the objectives may have variations, price increases or may require more labor than you thought.
Set aside a percentage of the budget to take care of any situation that you have not contemplated.
Consult with a financial specialist
Professionals in the accounting area are your allies. Make the most of their skills with numbers, tax knowledge, bookkeeping and make sure your money is moving correctly.
Acquiring a debt that exceeds your ability to pay.
Make sure you have updated figures in your reports and thoroughly evaluate whether or not you can pay the commitments you acquire. A miscalculation could create liquidity problems.
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