Maximising Returns in December: An Accountant’s Guide

November 21, 2024
|In Uncategorized
|By Angela O'Leary

December is a crucial month for businesses, whether you’re gearing up for increased seasonal demand or preparing for a quieter trading period. To make the most of this time, it’s essential to focus on strategic actions that optimise your financial and operational performance. Here’s how to maximise your returns effectively.

Strategies for Success

Forecast Cash Flow

    • Analyse best-case and worst-case scenarios for cash flow.
    • Update your cash flow projections to prepare for variability.

 

Manage Employee Absences. 

    • Plan for seasonal leave and potential illnesses.
    • Hire temporary staff if necessary to maintain operations.

 

Stay on Top of Invoicing

    • Ensure all invoices are sent and payments tracked.
    • Follow up on unpaid invoices to maintain healthy cash flow.

 

Plan for Irregular Payments

    • Account for early payroll processing or year-end bonuses.
    • Budget for staff events or additional seasonal costs.

 

Optimise Inventory

    • Reassess inventory to ensure adequate stock for demand.
    • Discount or promote slow-moving items.

 

Use Data to Guide Decisions

    • Review year-to-date financial reports.
    • Make data-driven adjustments to your strategy.

 

Leverage Tax Opportunities

    • Check if you’re eligible for any year-end grants or tax credits.
    • Prepare for VAT or sales tax obligations.

 

StrategyAction Plan
1. Forecast Cash Flow– Analyse best-case and worst-case scenarios for cash flow.

– Update your cash flow projections to prepare for variability.

2. Manage Employee Absences– Plan for seasonal leave and potential illnesses.

– Hire temporary staff if necessary to maintain operations.

3. Stay on Top of Invoicing– Ensure all invoices are sent and payments tracked.

– Follow up on unpaid invoices to maintain healthy cash flow.

4. Plan for Irregular Payments– Account for early payroll processing or year-end bonuses.

– Budget for staff events or additional seasonal costs.

5. Optimise Inventory– Reassess inventory to ensure adequate stock for demand.

– Discount or promote slow-moving items.

6. Use Data to Guide Decisions– Review year-to-date financial reports.

– Make data-driven adjustments to your strategy.

7. Leverage Tax Opportunities– Check if you’re eligible for any year-end grants or tax credits.

– Prepare for VAT or sales tax obligations.

Strategies for Success

Tips to Stay Organised

  • Clean Up Records: Ensure all receipts, transactions, and paperwork are accounted for to avoid last-minute stress.
  • Review Loan Options: Research funding opportunities now to avoid delays if needed.
  • Align Teams: Hold end-of-year meetings to communicate goals and set clear expectations for January.

Make December Count

With the right strategies in place, December can be a time of both reflection and preparation for a successful year ahead. For expert advice on navigating the year-end and planning for the next fiscal year, reach out to AG Associates at info@agassociates.ie. Let’s make this holiday season work for your business!