Wow, 2020. You’ve been a real doozy.
Between the global pandemic, election year, and roller-coaster international economy, it’s easy to imagine curling up under the covers and asking someone to gently wake you when it’s all over.
And as tempting as it may be to want to wake up to 2021 with a fresh cup of financial coffee, I’m here to tell you there’s still plenty of work to be done before this calendar year comes to an end so wanted to share some key financial guidance to help you along.
Now is the time to get back on the horse, take your finances by the reins, and wrap up the final quarter of the calendar year with a clear plan for life on the other side of 2020 and COVID-19
Here is my veteran company bookkeeper’s take on how to make these healthy-business indicators useful and actionable in great economic times and in bad.
When the clock strikes midnight on December 31st, I want you to have harvested your pandemic efforts, and be oh-so ready to jump into the new year ahead with fist-pumping confidence.
Just because some areas of our lives seem to be frozen in time, it doesn’t mean you have to hit the pause button on your financial success.
Your time is now. Your opportunities are now. Your financial success is now.
Count the steps with me, and head into these final months of 2020 with a clear, calm, and solutions-based plan for achieving your financial goals in the not-so-distant future.
5 Steps To “Make It Count” in 2020
1. Get Organized
First things first, it’s never too early to start planning for your end-of-year bookkeeping activities.
The end of the year is typically mad-rush time for businesses and CPAs.
Getting the attention and assistance of your vendors, clients and your accountant is going to be much easier now than in December.
So start early…gather your forms, statements, and receipts; clean up your accounts; get a handle on your inventory; and start reaching out and collecting on any past-due invoices. Dedicate a set amount of time each week to making it happen.
And if you run into questions, NOW is the time to get in touch with your CPA. You’ll have an opening in the spotlight without his or her other clients to compete with. And your CPA will appreciate your go-get-’em drive to get everything in order far before the end of 2020.
2. Re-Evaluate Your Current “Status Quo”
What worked for you before COVID-19, and what’s working for you during COVID-19, may be far different than what is going to work for you after COVID-19.
Take a look at how your business practices have changed since the beginning of the pandemic, and evaluate if those systems are still doing you any favors.
When COVID-19 hit, the majority of businesses were forced to be “reactive” – making changes on the fly to cope with new policies and norms. Now is your chance to be “proactive”.
What changes do you see in your industry in the coming months, and how can you prepare for them now? What systems can you put into place in order to be ahead of the game if shut-downs continue, or even regress?
Take some time to determine what’s currently working well, what could use improvement, and what can be done better next time around (if there isa next time around).
3. Catalogue Your Opportunities
There’s nothing like a crisis to breed opportunity.
While some businesses have capitalized on changes and trends related to the current global pandemic, many have not.Many are still hibernating until next spring.
So now is your chance to leave no rock unturned.
While other businesses are struggling to survive, it’ll behoove you to find opportunities to thrive:
Maybe it’s finding new revenue streams.
Maybe it’s forging new partnerships.
Maybe it’s cutting (or adding) in new places to uncover savings.
Maybe it’s enlisting a new service to free up your time.
Business as usual has changed – that’s for certain. So take some time to find where that leaves you and your finances. What opportunities do you see now that you didn’t have before?
Has your field of competitors shrunk?
Are there new programs available with your current merchants?
Are there relevant grants you haven’t yet applied for?
Do some digging, and list out the opportunities you see for the remainder of 2020, as well as the beginning of 2021.
4. Roadmap Your Finances
This is a great time to put your pen to paper, and plan your financial roadmap for both the final quarter of this year, and first quarter of next year.
What should be in your financial roadmap?
- Your Weekly Cash Forecast: what’s coming in, as well as your regular expenses.
- A Catalogue of Spending: outlining the types of spending to determine what is necessary, and what can be cut, reduced or delayed.
- Your Weekly Income Predictions: how and when you’ll receive income, whether it’s from clients, grants, loans or other places.
Having these numbers down on paper (or ideally in an ongoing spreadsheet) will help you to make upcoming financial decisions based on numbers, ratherthan on feelings. Plus, it will help to guide your New Year goals and directionsbased on data, and assist you in visualizing life post-COVID-19.
Your roadmap is a key piece in determining what you need to do now in order to obtain fiscal normalcy (and even growth) in the coming months.
Learn more about building your financial roadmap here.
5. Enlist Financial Guidance
If any (or all) of the above is not your cup of tea, know that it is for other professionals who can help you.
While your financial situation might feel dire at the moment, a mentor, coach or financial pro can help you to shift your mindset, and find the best actions for you to take right now for your personal or business finances.
Even though it may not feel like the easiest time to put more money into your business, getting advice from the pros is an investment in your financial future.
A professional bookkeeper or money coach can help you find new opportunities, shed unnecessary expenditures, and save your valuable time – instead of spending it learning things the hard way (AKA, on your own).
They can help you avoid pitfalls, and discover new paths to financial freedom in the months ahead.
The good news is, there are a lot of options available. Just ask any business coach — most offer variable-level packages, depending on the help you want and how hands-on or hands-off you’d like to be with your business’s bottom line.
Make Your 2020 Count
There are still three months left of the year – plenty of time to shake up your finances, and blitz ahead into 2021 with resources, clarity and confidence.
And if you want to learn even more about making the most of this final calendar-year quarter, I’m here to help.
Your business and finances don’t have to be lost in the vortex of 2020. Make these next months count by taking actions to weather this (and any future) financial storm.
Crises happen. Economic downturns happen. And yet there are businesses that have survived and thrived for over a century and weathered them all.
Your business can, too.
