Mid-Year Financial Business Planning for Opportunities
It’s halfway through the year, how is your business doing?
Even if you are challenged with supply chain woes, hiring challenges, and tough financial decisions, there’s still time to ensure that you have a great 2021 especially if you are willing to invest a little time to create a strategy to move your business forward.
The first place to start in building this strategy is to understand what your financial results are telling you.
What Are Your Numbers Really Telling You?
Recognizing the changes from period to period will point you to areas of opportunity to capitalize on or areas that need course correction for improvement. Take a careful look at three key areas, drill down into the details, and identify critical actions that will go the furthest in driving you to toward your goals of higher profitability and cash flow. Here are three examples of areas that can make quick improvements.
Price Increase Opportunities
While increasing pricing may be daunting, your customers may place less emphasis on price increases and more emphasis on the availability of your products or service. Understanding the price increases you are receiving is imperative to making sound decisions. Determining what your client’s value most is a key component of the decision process.
Growing revenues can mask unprofitable clients. Increasing revenue from new customers can hide declines in profitability from existing business units. Review profitability by client or business group to avoid being blindsided by unprofitable clients.
Tax Reduction Opportunities
Is your income up or down from 2020? Without reviewing your tax situation, you may miss out on taking advantage of tax minimization strategies. These strategies could include employee retention credits, reviewing retirement plan options, acquisition of need equipment or claiming R&D credits you never knew existed. Don’t wait until it’s too late to prevent unpleasant tax payment surprises. Take time to review your tax liabilities and ensure you have the cash to cover future tax liabilities.
At Kirsch CPA Group, we make it our practice to sit down with our clients at mid-year to take a close look at the numbers, trends and strategies, to ensure that your business is on track to meet business goals, head off any signs of trouble, and take corrective action to address problems.
Get Started with a Financial Analysis
If your accountant is focused only on your tax returns and compliance, you’re not likely to gain insights into opportunities for growth, not to mention the opportunity to take corrective action that could increase your profitability and leave you better positioned at tax time. It’s not too late to diagnose and address financial issues in your business for 2021 but, if you wait, it soon will be.
Let Kirsch help you identify what may be holding you back from your best year ever.