4th Quarter Financial Goals to Maximize Your Year-End Profits

4th Quarter Financial Goals to Maximize Your Year-End Profits

September is here, which means that we are almost ready to step into the fourth quarter of 2018. How has your business performed this year? Whether you are trying to turn things around after a slow year or you want to maximize profits after a great year, it is the perfect time to take a closer look at your financial outlook. Setting a few financial goals could have an impact on the long-term performance of your company. Start working on these goals right now so that you are ready to implement the right strategies next month.

Resolutions Before the New Year

Setting the right goals for the last quarter of the year can drive your business forward. But, you need to be proactive to be sure that you are finishing 2018 in a strong position, instead of coasting through the last few months. Most likely, there are a few small things that you can do right now to ensure optimal results in the future.

There’s no reason why you need to wait until January to set new resolutions for your company. Instead, you can create those goals right now so that you are setting the foundation for a strong 2019. Procrastinating your efforts will stall the business growth that is available. As a result, you are leaving money on the table that could be contributing to the bottom line.

Common Annual Trends

Before you set these financial goals, you need to consider the common annual trends that are experienced in your company. For example, if you are in the retail business, then there is a good chance that your biggest months of the year are coming up. As shoppers gear up for the holiday season, many businesses benefit from the higher sales volumes.

In this situation, you need to be ready to amp up your marketing efforts and bring people through the door. Look for ways that you can offer holiday sales or other options to encourage people to add a few more things in their carts. Also, make sure that you offer online shopping options. Online shopping trends are growing every year because shoppers don’t want to face the crowds at the stores. If you offer your products and services on a website, then it means that you have the opportunity to tap into the online revenue that could take your company to higher levels of success.

On the other hand, some businesses find that things slow down in the fourth quarter. If your business model isn’t based around retail sales, then you need to be looking for ways to stay productive even though things are slowing down for a time. For those business owners in a service-based industry that is affected by seasonal trends, such as home contractors or landscapers, then right now is the perfect time of year to finish the season strong and start working on your strategy for next year. Use this opportunity to build more connections in the industry so that you can start stacking the pipeline for future sales.

Setting New Financial Goals

Regardless of your industry, there is wisdom in tapping into the information that is available from an experienced accounting team. You can gain insights and personal recommendations that can make a difference to help your company grow in the future.

Do you have specific financial goals in mind? Or, are you looking for insights that can make a difference for your company? Our team at Easier Accounting is always here to answer your questions and assist with anything that is needed to maximize your results in the future.

Here are a few ideas that might help you choose the financial goals to focus on this quarter:

  1. Increasing Revenue

It is obvious that you want to boost revenue to improve the results for your company. But, it can sometimes be a challenge to know where you should be focusing your efforts. Think outside the box to see how you can bring in more revenue. You might have the opportunity to increase the number of sales that occur within a specific timeframe. Or, consider the option to raise your prices so that sales stay consistent but you are bringing in more money.

Many different tools can be used to forecast your revenue. Even if you have the right tools, you also need to tap into the experience and insights offered by industry professionals. Services might include marketplace analysis, past performance, anticipated industry trends, and more.

The best solution is to be specific in your revenue goals. Instead of setting a goal to “boost 4th quarter revenue,” consider adding specific details such as “increase monthly revenue by $5,000 by December 31, 2018.” Then, break down the strategies that will be needed to hit the numbers that you are aiming to achieve. For example, you might need to have a certain number of sales calls or client meetings to ensure that enough sales are closed on a monthly basis.

  1. Decreasing Expenses

As your revenue goes up, it doesn’t guarantee profitability for your company. In fact, there are times when businesses end up in difficult financial situations because they fail to account for the money that is moving out of the company. Controlling your costs is essential to avoid failure in the future.

Remember that sales volume is not the only factor that affects profit and loss in your company. Instead, it is more important to make sure that you are spending less than what is coming into the business.

Take inventory of the ongoing costs that are being paid for overhead expenses, such as building rent and maintenance, payroll expenses, inventory management, taxes, and more. Also, consider one-time fees that come up so that you can have the cash flow on hand to pay for these things.

You will likely find areas where you can reduce waste or cut unnecessary subscriptions that are no longer being used. Plus, you might find opportunities to negotiate better contracts to maximize profit margins on each project. Look for solutions that will allow you to decrease utility costs, interest payments, or other inefficient systems that are draining your bank account. Don’t hesitate to bid out services or work that needs to be completed to see if you can find comparable solutions for a fraction of the price that you are currently paying.

  1. Maximizing Tax Deductions

Even though tax season is still a few months away, it is important to address your tax strategy throughout the year. If you spend money on products or services that are used for your business, then those costs can be used as write-offs to reduce your tax burden for the year.

You might be strategic with your purchases so that the transactions are complete before the end of the year. If you’ve enjoyed strong profits this year, then it might be time to buy new equipment that is needed in your office or restock inventory. Timing is everything when it comes to tax strategy, so it is essential that you are leaning on the experience and insight offered by an experienced accounting team. We are here to answer your questions and help you determine the best strategies that are available to manage the expenses that you are paying.

  1. Managing Debts

Business credit and debts can take a toll on your cash flow. If you are incurring high-interest costs, then it can feel impossible to get ahead of the payments that are required each month. Right now is an optimal time to put together an effective debt payoff plan so that you can control the amount of money that you are wasting in interest expenses.

What is the benefit that you are getting from your debt? Calculate the amount of annual interest that you are paying to determine if you are gaining the benefits that are needed to help your business grow. Often, the debt burden is dragging down your profitability and increasing your stress levels at the same time.

If you are carrying credit card debt, then make sure to pay down the high-interest balances first. One option is to consider a low-interest card or a balance transfer option that will stop the interest for a time. When it comes to debt management, don’t be shy to get on the phone so that you can discuss payment options with the lender. For example, a phone call to your credit card company might result in a lower interest rate or better payment terms. If it makes sense, then you might transfer your business loan to another lender to achieve the favorable payment terms that are needed to help you gain control of your business finances.

Year-End Financial Goals for Your Business

These finance goals can be addressed during any time of the year. But, right now is a perfect opportunity to step up your efforts so that you can have a strong finish to 2018. If you need assistance, then don’t miss the opportunity to work with an experienced account team. Contact us at Easier Accounting to learn more about the services that are provided. We offer a range of financial solutions, including tax strategy and filing, bookkeeping services, and other options to improve the financial results for your business. Call today to talk to an industry professional: (888) 620-0770

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