Dear Occasional Client*:
I know you just love getting these monthly notes from me. But, we really do want you to pay the lowest amount of taxes legally required- and to grow your business. And, it’s really hard for us to help you do that if you think meeting in January or February will work- especially for the year that just ended. Because once the calendar has closed up 2013- so has your ability to afford yourself of whatever tax breaks existed- and to insure that you can hit 2014 at maximum speed.
Let’s start with what needed to be done all year… Each quarter, you should have evaluated your gross revenue and your expenses to insure that your salary reflects the equitable compensation rules. And, your employees need to be paid well enough to have them stay with you- and to help your grow your business. You needed to send in your payroll taxes (typically monthly or quarterly, unless you are a solopreneur- which may let you do so annually).
If this kind of stuff is a pain, you should have signed on with us. We can run your back-end operations at a very reasonable price- and can use that information to prod you to do even better with your business.
We also need some time to go over how the laws that change next year (or expire this year) will affect how you do what you do. It would be useful to see if there is an additional need to slash expenses, acquire more inventory, raise prices, or any combination thereof.
And, yes, you need a written plan for next year. It doesn’t have to be elaborate, but it does have to cover marketing, production, competition, and financial data. One with milestones you can put on the wall. (We even believe these milestones should be shared with your employees, if you have them, so everyone knows what’s expected.) It’s the best way to insure that you can and do can monitor progress.
It’s also a great time to see if anything you’ve been doing needs to be stopped. Anything that doesn’t grow your bottom line- your profits- is the best target. Revenue is great- but profits are what counts. Anything that requires twice as many resources- time, working capital, people- to get the same amount of profit must be evaluated to see why it still belongs in your portfolio.
Remember that your customers are your lifeblood. Getting new ones- but especially keeping your existing ones- are crucial to your existence. Determine how you can more effectively interact with them- by phone, by email, by snail mail- and in person. Make sure you touch each one at least once a quarter. And, it doesn’t hurt to ask them for a referral to meet new clients.
Evaluate your website and blogs. Make sure all the information is up-to-date- and reflects your current mission. Check your links to make sure they all go to the places your want.
And, make sure Twitter, Pinterest, Facebook, and the other social media sites are part of your arsenal. If you need to use specialists or virtual assistants, get them on board now- so your year goes smoothly.
We really want you to have the best 2014 possible. And, if you just lay back expecting things to fall into place- then you can bet that we have better dreams for your future than you do- and that should never be!
See you soon…
I like http://t.co/plwyLsjixh A less taxing prodding ☺
…death and taxes
Caro Ness recently posted..The Advent Calendar
Some folks don’t quite equate the two, but…
Thanks for the visit, Caro- and the sobriquet…
Taxes suck, but paying more than you have to sucks more.
Interesting analysis, Karin…
But, how would you pay for education, roads, garbage collection, etc. without taxes? I doubt many people would donate funds… 🙂
Thanks for the visit AND the comment.
This is a great time of year to start thinking ahead. Granted quarterly evals are good too but for me the promise of a new year is very motivating!
Carolina HeartStrings recently posted..PEPPERMINT HOT CHOCOLATE
Ah, Alessa…
The promise of a new year IS motivating. The concept of quarterly reviews insures that the motivation is effective and carried through for the year 🙂
Your company sounds like a great resource for any business!
We certainly strive to be that way, Suerae. But, like all businesses, it requires focus, devotion, energy, and commitment.
Thanks for the visit- and the vote of confidence.
#accounting
I like http://t.co/goo4mnCNuw
I think I’ll try and clean up my receivables. Yes I should have been doing that all along 🙂
Carol Tomany recently posted..Battling Bats
It’s crucial that receivables are in the bank, Carol. Vendors don’t accept receivables as payment- nor do grocery stores. Go at it! I know you’ll succeed- without being gruesome…
Good advice. The thing is, I used to believe that I could do all my tax returns and accounts myself. Turns out, I am not. My accountant is making a huge difference!
Muriel recently posted..I Am Tired Of Being Nice
See, you CAN make more money just with a little more help. Glad to see that’s working for you, too, Muriel.
Tax returns & accounts are complicated…leave it to the experts! http://t.co/fn0t49idJx
Don’t want to wait for a rainy day. An Open Letter http://t.co/GXW4jWOXvf
I so wish. But if wishes were horses. . . . This is a great letter. You need to send it or something like it out every quarter. Just my 2 cents worth.
Ann Mullen recently posted..LifeBook–A Gift for Your Posterity: “How to Organize Your Memoirs”
Yes your stable would be overflowing, Ann..
I can’t send such a letter every quarter- that would be overdoing it. But, we do interact with our contracted clients in such a fashion monthly or quarterly.