As I write this newsletter, we are one quarter of the way through the year. It’s always a bit hard to believe how quickly the days turn into weeks, and then months and then quarters. But let’s not get ahead of ourselves. Let’s take a moment to pause at the quarter end point and do a check-in on the year.
Below are some bullet points outlining how I think about the end of the first quarter.
- Your budget and operational plans should be set. Ideally, this would have been done before January 1 but often people want to see how the prior year ended. Sometimes major contracts with customers or suppliers aren’t agreed until January. So, I completely understand that plans may not be fully set until after January 1, but at this point, your 2024 plans should be final.
- Frankly, it’s time to start assessing whether you are on track for the year. I try not to make too much of January results unless they reveal something that is predictive of the year. That’s usually not the case. Many businesses have variability in the top line across the months and as the saying goes, “One month does not a year make”. That said, by the end of the quarter, it’s time to start assessing whether you are on track or if corrective action needs to be taken.
- If you have significant capital expenditure plans, you should have vendor quotes and perhaps even placed orders. By significant, I’m talking about items that are tens of thousands, six-figures or even in excess of a million dollars. Certainly, construction projects should be contracted or even underway. If you’re just replacing some basic computer equipment, that’s easy to deal with during the year without a lot of planning.
- How are your hiring plans progressing? It continues to be a tight labor market in most areas although with some signs of slight easing. If you have important hires to make (and they should all be important, otherwise why make them?) then you should be actively recruiting and engaging a professional recruiter if you don’t have the internal resources to do the work.
- Now is also an excellent time to do some tax planning. While your CPA may not have finalized your 2023 returns they should be able to provide you a projection of 2024 estimated payments. Work those into your cash flow planning for the rest of the year.
So with a quarter of the year in the books, it’s time to either build on the success of Q1 or double down on making the year a success if you are behind. Are you on track for a successful 2024?
If your business could benefit from fractional CFO services, I would welcome the chance to speak with you. Please give me a call at (314) 863-6637 or send an email to [email protected]
The archive of these monthly newsletters is posted at the Resources section of homza.com
your cash is flowing. know where.®
Ken Homza
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