Depending on your industry, the month of December can be crazy busy with high volume sales and managing all that inventory. On the other hand, if your business isn’t in retail, wholesaling, distribution or manufacturing, business can be dreadfully slow. Yet these relaxed periods can be perfect for planning – financially and otherwise — for the year ahead. Ending the year by tying up any loose ends and laying out an operational roadmap for the year ahead is just smart business.
- It’s Tax Time Already — Though taxes may be the furthest thing from your mind, now is the time to get your year-end taxes together. In addition to collecting all your financials, you may want to get an idea now on whether you will owe taxes, how much, and how you will pay for them. Options such as factoring receivables can be used to pay your taxes while keeping your business operations moving smoothly.
- Improve Business Processes — More than taxes, the end of the year is a good time to assess your business processes and procedures and consider a new and improved way of running your business. Are your customers taking too long to pay their bills? What kind of impact does this have on your cash flow and your ability to grow your business and take on new opportunities?
Securing financing for all of these initiatives can be done with accounts receivables factoring. With factoring, you collect on your invoices in a few days rather than several weeks giving you greater consistency and predictability regarding when you will get paid. This security enables you to make better decisions regarding your next business move, because you’re not worried about late-paying customers or poor cash flow.
Adopt New Financial Habits Now Such as AR Factoring
If you know your financials could be improved with better processes and procedures, now is the best time to implement them. The New Year is all about change and adopting more effective methods and ways of doing business.
If you previously accepted a regular, late-paying client – maybe because you sympathized with their financial situation – make the decision in the New Year that you will work out other arrangements so that the client has to pay on time. Make use of financial tools that are available to you such as accounts receivable factoring to improve your financials once and for all for 2015.