Preparing For A Happy End Year
NOVEMBER 5, 2019
We all celebrate the start of the year as a new thrill, filled with possibilities. But what about the end of the year? Before the holiday season is in full swing, now is a good time to check in with your company status, review your books and project lists, and prepare employee reviews. These steps can lead to a solid 2020.
The performance of your company relies on the balance of many areas, from sales and finance to equipment, employees and subcontractors. Start with sales, and track how many new leads you got and how many turned into projects. Figure out if you grew your client base or maintained your established clientele. Also track the number of general contractors, subcontractors and architects with which you worked. They all should be considered clients too! Tracking these companies will help you maintain a list of people to contact for repeat 2020 business.
Your accountant will be asking for records soon, so review your financial software platform to run a profit versus loss report. If profits are lower than projected, determine what adjustments you can make for an end-of-the-year increase. If they are above, talk to your accountant about depreciation rules, taxes and cash. Adjustments might need to be made for fourth quarter taxes. Figure out if you can give employee bonuses or raises as expected and if the amount is appropriate.
If you work with subcontractors or vendors, make sure their 1099s are collected. For W2s, gather reportable items like education costs, charitable donations and insurance premium payments.
Beyond paperwork, talk to your crews about the quality of their tools and equipment. Check your material inventory, and figure out if you can use items on another project. Determine if you need to upgrade tools and if your fleet needs maintenance.
Complete your performance reviews, and meet with your employees. Comprehensive reviews include both the good and bad with employees so they too have goals for next year. Also consider yourself in terms of areas of improvement and salary adjustments.
Once your assessment of 2019 is done, start thinking about 2020. List your accomplishments for this year and see what can be duplicated. Write down your goals for next year, strengthen your budget, and focus on strong projects that will grow your business and highlight your talents. If we can help you throughout the year in any way, please ask. Manufacturers make great partners! Happy end year, and here’s to working with you in the new year.