End-of-Year Business Advisory: Steps for Success in 2025

End of the year business meeting

As we close the books for 2024, it's crucial to prepare our business for a successful and efficient 2025. Here are some key areas (business advisory) to focus on:

1. Implement a User-Friendly Expense System: Ensure you have a simple and easy-to-use system for recording and approving expenses. This will help streamline operations and prevent any last-minute scrambles.

2. Regular Reconciliation: Make sure that cash, accounts receivable (AR), accounts payable (AP), and inventory are reconciled monthly. This habit will make it significantly easier to reconcile the entire balance sheet at year-end.

3. Accurate Recording of Shipments: Properly record items that have been shipped but not invoiced or invoiced but not shipped. This ensures that your financial statements reflect accurate and complete data.

4. Depreciation of Fixed Assets: Fixed assets should ideally be depreciated monthly, or at least quarterly. This will keep your financial records accurate and up to date.

5. Review Revenue Recognition Policy: Ensure that your revenue recognition policy is in compliance with current regulations. This will help avoid any potential issues during audits.

6. Inventory Management:

   • Write off any obsolete inventory.

   • Conduct regular cycle counts for fast-selling items, not just a physical inventory at year-end.

   • Consider SKU rationalization, i.e., reevaluate whether to continue selling slow-moving inventory.

   • Optimize inventory levels and start planning your demand based on pipeline reports from sales teams.

7. Sales and Marketing Strategy: Develop a clear sales and business development strategy. Set expectations with your sales team and align marketing efforts to support their initiatives. This will ensure a cohesive approach towards achieving business goals.

8. Operational Policies:

   • Review and adjust minimum order quantities, safety stocks, and lead times.

   • Identify SKUs with repetitive quality issues and develop policies to improve operational efficiency.

9. Cash Flow Management:

   • Maintain a cash flow forecast based on sales projections, demand planning, and expense management.

   • If a full-time CFO isn't within reach, consider hiring a fractional CFO to implement and oversee these strategies.

10. Marketing Strategy:

    • Marketing Calendar: Create a marketing calendar to plan and schedule campaigns, promotions, and content throughout the year. This helps ensure consistent and timely marketing efforts.

    • New Products: Plan and execute the launch of new products with well-coordinated marketing campaigns. Highlight their unique selling points and benefits to attract customers.

    • Improved Content: Continuously improve your content by creating engaging and valuable material for your audience. This includes blog posts, videos, infographics, and more.

    • Social Media Strategy: Develop a robust social media strategy to increase brand visibility and engagement. Utilize platforms like Instagram, Facebook, LinkedIn, and Twitter to connect with your audience.

    • Influencer Strategies: Collaborate with influencers to promote your products and services. Influencers can help increase brand awareness and reach new audiences.

By focusing on these areas, we can set the stage for a prosperous year ahead. Let’s work together to make 2025 our best year yet!