08 Tips to close the year with a positive balance!

Discover 08 tips that can help your company close the year with a positive balance.

08 Tips to close the year with a positive balance!

1. Create a financial plan to close the year with a positive balance

As the intention is to have the accounts up to date and a flow of finances that is adequate, the first step is to create a financial plan. For it to favor the achievement of this result, it is essential that it is complete and includes several variables.

At this point, consider, for example, what are the fixed and variable costs of the business. Decreasing expenses can help with the strategy.

In addition, it is interesting to evaluate the financial movement throughout the year, analyze the cash flow and check the prices practiced. With this and other information, such as the balance sheet data, it is possible to identify whether the parameters are adequate.

2. Prepare a project and process plan

After mapping the company’s financial situation, it is interesting to create a plan related to projects and processes. This is the time to understand what must be accomplished by the end of the year and what results in the initiatives can bring.

It is the case of evaluating the need for investment in the coming months or carrying out specific activities in the last month of the year. Depending on the situation, it may be interesting to leave certain projects for the next year, in order to maintain the balance of accounts.

3. Make a clear definition of goals

The mapping of processes and projects is directly related to the next step: the definition of goals. At this point, it is recommended to establish what you want to achieve, what is the expected deadline, and what is the associated cost.

The increase in sales can be achieved with promotions and investments in advertising, for example. Therefore, it is crucial to understand the impact on the accounts and on the goal of closing the year in the dark.

Furthermore, it is necessary to set financial goals. Based on the results of the previous months and what remains to be raised, determine the amounts needed and what can be spent in the period. With these estimates, it is possible to act effectively in search of a positive balance.

4. Prepare a budget and do the business financial control

So far, you have project plans, processes, and finances, as well as financial goals. To ensure that plans can happen as expected, the ideal is to prepare a business budget or adapt what already exists, if applicable.

Considering the goals and possible expenses, distribute the resources among the different areas of the enterprise and process stages. This helps to avoid overspending while providing the resources required by the business.

In addition to preparing the budget, it is necessary to exercise corporate financial control. It is recommended to record all types of financial transactions and identify them – especially in the case of outflows.

In this way, it is possible to identify budget bottlenecks and points that were not properly addressed in the planning. Also, it is a way to avoid surprises in the future, helping to maintain the visibility on the development.

5. Create a plan for year-end sales to close the year with a positive balance

Considering the costs and financial movements over the months is important to avoid excessive spending, which leads to a negative balance. However, it is also necessary to think about financial inflows, such as those obtained from sales.

The end of the year, in particular, tends to be positive for businesses in various segments, such as commerce and the service sector. Therefore, it is worth making a sales and revenue forecast, considering the specific characteristics of the period and its return potential.

It is also interesting to think about specific promotions and actions to leverage results. Considering these points in advance tends to favor negotiation with suppliers — especially for micro, small and medium-sized companies, which are able to plan better.

6. Pay attention to stock to close the year with a positive balance

While it’s important to prepare for year-end sales, it’s critical to be careful about the condition of your inventory. This is to avoid situations such as the immobilization of a large volume of capital and the possible waste of resources.

In addition, management can be useful to prevent stockouts. It happens when customers want to buy, but cannot find the desired product, for example.

In practice, this is a situation that affects the conversion rate and can harm the relationship with the audience. Therefore, it is worth making a proper stock forecast and managing inputs and outputs.

Finally, monitor the inventory turnover and see if it is necessary to make promotions for specific items, for example, preparing the company for possible consumer demands.

7. Prepare for period expenses

Another essential point to taking good care of finances is attention to specific expenses at the end of the year. The main expense is usually the payment of the 13th salary, but there are also expenses with temporary hires, seasonal campaigns and other common activities in the period.

The idea is to provide resources over the months. But, if it is not possible, they must be contemplated to reach a positive balance. That’s because larger expenses at this stage can take you away from your goals if there is no proper planning.

8. Contain expenses

Depending on the current situation of your business, it may be interesting to think about cost containment. With this type of plan, it is possible to strategically reduce expenses, which reduces outputs and favors profit.

In this case, it is worth mapping the processes and identifying the expenses, considering the different categories and priorities. The intention is to understand how spending is related and where bottlenecks and waste are.

Remember that containment must be strategic so as not to compromise quality or efficiency. In this way, it favors performance rather than affecting market positioning or customer satisfaction.