As we roll out of this holiday weekend, from giving thanks for all that we have, the stress of the holiday season often begins between the gifts, the parties, the planning…and for those of us in finance – it’s often year-end for our business.  While I can’t offer any special advice on how to handle the holiday stress….I can give you some thought on how to use the next four weeks to smoothly round out the YEAR.

You can do it!

Ok, maybe a little cheesy, but it’s true.  The next few weeks are doable, and it can be a smooth year-end.  The most important part is taking a calm approach, as it will guide how well the team performs and accomplishes the tasks at hand.  Calm leaders think clearer, stay composed, remain optimistic and make rational decisions; and your team will feel the peace during the storm during this crazy time of year.

Evaluate current state:

Organize the outstanding items still open for 2023.  I’d recommend working closely with leaders and managers within the finance team to devise the open list.  This will help you decide what needs conquered and where it can be delegated.  Examples to Evaluate include:

• Any areas that need attention – how are collections?  Do we have payables outstanding that need entered and paid?  Are there any hot issues with customers or vendors that need resolved?  
• YTD Account Reconciliations – how do reconciliations look through most recent close?  These can be an indicator of areas that need attention before closing the year.
• Staff Planning – who will be working, who will be out of the office?  You’ll need to ensure that there is adequate coverage for the teams with the staff taking vacations; the last week of the year only has 4 business days.  The sooner this is determined, the better.  I’d recommend a large calendar within the department to provide a visual of who is working.
• Inventory counts – are they scheduled? Review to determine appropriate timing, and adequate support for any new staff helping with counts this year.
• Year-end bonuses and/or Distributions to owners – consider timing to calculate payments, review and approval, and enough time to complete, whether it’s sending checks or ACHs through the bank, or through payroll processing.
• Tax strategy – Review the company’s tax strategy and determine if it’s in line with planned cash activities.  Should the team be paying out as much as possible? Collecting in as much as possible? Where do we need the cash position to be at 12/31?
• 2024 Budget – is it complete?  Any other departmental feedback needed?

Applaud the team!

Use this time to congratulate your team on the year!  Aside from a holiday party or get-together, take the time to connect with individuals on the team on a personal level, without the business talk.  This could even be while waiting on the copier, or while getting a cup of coffee, or grabbing lunch.  Ask about the family, plans for the holidays, or something special or hobby.  Thank them for all their hard work this year.  Hopefully, you walk away with knowing something about them that you didn’t know before, and for them to feel encouraged by your interest and appreciation in them. Being genuine and applauding them for a great year will positively drive the team across the finish line for the remainder of the year.

 

Realistic Expectations:

Let’s be real, everything you need to get done, probably won’t get done.  And that is OK.  Repeat that….It is OK.  Set realistic expectations for yourself, your team, and the company, and communicate those.  If we expect that everything must get done and everyone just works ‘til they drop to get there – the company and the team will suffer and likely fail; so, set a path for the group.  (Remember SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound.) As the leader, communicate those goals and expectations with the team, and also to your fellow, cross-departmental leaders within the organization.  Evaluate and document what big rocks remain and will roll over into the new year and set your sights on all that can be achieved in 2024!

Our Fractional CFOs are experienced in guiding Kansas City businesses and helping them navigate challenges that can be anything but typical. Whether you’re looking to grow or change strategies, contact Mike DeMaio at [email protected] to find out how we can contribute to your team.