It’s the end of the year and businesses have a few more days to go to conduct any more important business activity.
However, as the year draws to a close businesses need to carry out some critical activities that help pave the way for a more prosperous new year.
Nairametrics has put together 10 activities that should be carried out at the end of the year.
- Share Christmas & New Year Gifts to clients and customers – It is the holiday season and it’s time to show appreciation to clients and customers who have provided you with business. Depending on your budget you can send cards, Christmas hampers, or any other item worthy to be given to your client. Considering how tough the economy currently is, small businesses can devise creative ways of sharing gifts with their customers at a cheap rate. It can be cheaper to get your employees together and have them put hampers together themselves, rather than buy already-made ones. Don’t also forget the needy and less privileged. Donations can also be made to charities and other NGOs focused on changing lives. These are even tax-deductible.
- Hold end-of-year retreats – Retreats are a good way to bring your employees and management together. At retreats, employees have the opportunity to discuss strategy with management and share ideas on how to move the organization forward. It also gives employees a chance to play a role in developing strategies that ultimately affect their performance and deliverables. Employees typically come back pumped up in the new year following a successful retreat.
- Hold Budget sessions – Budget sessions are an opportunity to evaluate the current year’s performances and decide on the next year’s expenditure and income. During budget sessions, the company gives itself revenue and expenditure targets which it evaluates periodically. It is much better to get every department or unit in your company involved in the budget-making process. Have them come up with their assumptions for expenses and revenue and make sure they defend every single item on the list. Employees are better informed about the company’s finances when they participate in budget sessions. They also become more accountable as they are already aware that come year-end they will have to defend their actuals.
- Reward performing employees – The end of the year is also an opportunity to reward loyal staffs who have performed very well in the fiscal year. End-of-the-year appraisals are received and performing staff is rewarded with promotions and/or bonuses etc. You should also encourage team bonding activities at year-end as a way of promoting interpersonal relationships.
- Schedule end-of-the-year audits – It is also important that the finance department of your company get ready for end-of-year audits. If December falls within your financial year, then you must notify your auditors early enough to perform the yearly audit in January. Remember that annual audits are relied upon by tax authorities and going by the sound bites of the current government, taxation will be a very critical revenue generation drive for them. Failure to pay taxes or file returns will surely attract penalties.
- Close out all your receivables – This is also a period to reach out to your debtors. Get a list of your receivables and identify those who can comfortably pay you. Organisations often see slower business activities in December and may be reluctant to pay. Thus, you should set out early to recover your debts because January is not any better. It is always better when you enter the new year with lower or no debts.
- Pay all outstanding bills – This is also a good time to check all your bills and indebtedness. Some of your bills can attract discounts if you pay them early. It could also result in higher charges when carried over into the new year. You can also use this opportunity to review all your reoccurring bills to decide which ones to drop in the new year. You will be surprised by how much you can save once you have this review done.
- Renegotiated unfavourable and expired deals – This is also a good time to renegotiate your loans, and other agreements especially if they are expiring at the end of the year. Sit at the table with the other party and make sure the new deal favours you next year. Some businesses may also see their rents expire in December only for the Landlords to increase them. Be prepared for surprises and adopt proactive measures to curtail any decisions by the other party that could cost you severely
- Track your inventory – For those in high turnover, businesses make sure you put all in place to have your end-of-the-month inventory count. Count all your stock of products you sell in your display room, warehouse, with distributors, etc. You do not want to go into the new year without doing this.
- End-of-year sales and giveaways – For those with unsold inventories and stock why not use this opportunity to sell at a huge discount? There are probably items that had not sold and have been on display all through the year. Why not give them out at a discount? Discounts can also be given to your loyal customers in the spirit of the season. This is the point is recommended if the business has already met its profit targets during the year.
This article was first written in December 2015 but has been updated to include new information.
Thanks for sharing. I found this extremely useful towards the end of 2015. I made use of some of the tips and the results were good. I follow your articles on Punchng.com