The fourth quarter is historically a big âpushâ? period for small and big businesses alike.Â It presents an opportunity to meet sales goals and finish within budget expectations.Â To do so, requires planning and foresight.Â Here are a few tips that can help you focus on those year-end goals:
Monitor Your Accounts Receivable
Many business find themselves struggling with accounts receivables that stretch out as far as 60 to 90 days past due.Â Your inability to collect your accounts receivable in a timely manner could have a severe impact on your cash flow, leaving you strapped during a busy selling season.
Manage Your Debt Effectively
Credit cards finance a large portion of business debt.Â Therefore, it is important to always review your credit cards statements for interest rates that may have spiked.Â If they have, you need to try and refinance to a lower interest credit card.Â Also, make sure that you are making your payments on time.Â The fine print of some credit cards can slam you with hefty penalties and interest rates if you are even one day late.
Review Your Inventory
If your business carries any type of inventory, now is the time to take stock.Â Take a look at your existing inventory and re-think slow moving items before the end of the tax year. In order to take a deduction for slow moving inventory on your taxes, you must make an effort to reduce the inventory by discounting, special offers or even selling off items to another vendor. If discounting fails to generate sales, you can then take a deduction.Â If you are in doubt as to how to handle this issue, talk to a tax professional.