It’s right about now I start to get that festive feeling! After all, ’tis the season to be jolly’ as they say! Have you had a good year? I do hope so? Or do you just think you have? Do you have a clear snapshot of your business going into the New Year?
For this you need to have a clear view on the numbers. Therefore, my first suggestion is to get regular up to date management accounts every three months from your accountant as this will ensure you know precisely where you are and will help you to plan for your goals in 2020.
My second suggestion is have some fun! For franchise brands often the end of the year is the time for annual conferences. It’s a time to look back on who the top performers were and a chance to learn from their successes.
At d&t we attended the Best Franchise Awards at the end of November and saw many examples of best practice in action. It was an inspiring event, celebrating many positive stories from within the industry. It also offered the chance to network and listen to some great speakers presenting from their own real-life experiences.
As well as the successes, the end of the year is also a time to reflect on things that perhaps didn’t go quite go to plan. An honest appraisal of where more training or support is needed can help avoid the same mistakes in the future.
From a financial point of view, a review with your accountant is also worth while. It may also be a good time to switch to a more proactive firm if the service your current provider is offering doesn’t ‘add up’ to match your growing needs?
We often see small business owners, or Sole Traders get stung with weighty tax bills, from something as simple as not keeping an eye on their sales throughout the year. Your accountant is a trusted partner and as such should be able to advise you at the earliest point, if this is going to happen. At the very least, they should be advising you how much to set aside to be able to pay such a bill. At d&t we do regular checks with our Sole Trader (ST) businesses, weighing up the options of whether to stick as an ST, or make the move over to being a Limted Company.
It is also important to talk to your accountant when you invest in or buy assets to ensure the transaction is completed in the most tax efficient way. The most common area people run into challenges is with a new car but we also work with clients where the disposal of property needs managing properly too.
In business, mistakes are inevitably made occasionally and by learning from them progress happens. Learning the hard way however, can be costly, so as part of your annual review be sure to consider the numbers carefully and get appropriate advice, as managing the financial side of the franchise properly will have a major impact on profitability.
I’ll take this chance to wish you all a very happy Christmas and a prosperous New Year! Now who’s got the mince pies?
