Auditing your Business in 2021

Chantelle Quow, CEO of CQ Business Consulting Inc, shares tips for managing year-end business reviews to jump-start the new year with the right strategies for moving forward.

If you’re like most business owners, your responsibilities seem endless. Taking on yet another investment in time and money can be quite challenging. Nevertheless, to plan for the year ahead, and continue to grow your business, it’s worth investing in an end-of-year audit of your company’s activities and expenditures. This will help you resolve prior issues and create the direction you need for continued growth in the new year.

To know where you’re going, it’s important to look at where you’ve been.

The fundamentals

Reviewing how efficiently your organization has been spending its money and time will enable you to concentrate resources on improving profits, reducing costs and increasing return on investment. Here are some topline suggestions:

1. Audit your expenses:

Expenses can be anything your organization spent in return for income – rent, invoiced expenses like the cost of supplies, and reimbursable expenses such as travel charges incurred by an employee. If your firm has recently experienced rapid growth, you risk losing control over some areas of operation, and business efficiency can decline. An audit reveals areas where operations can be improved.

2. Overall capacity:

Can you forecast what your workload is going to be in the new year? Are you at capacity now? If you’re in a production as well as a retainer model, review the production work that has been completed as opposed to ongoing retainer allocated work. Are there new overhead costs like software that you need to start incorporating into your retainer work billing?

Look at your team. Are there any redundancies? Are there any gaps that you need to fill in your organization?

3. What does your organic client growth look like?

Did you lose some clients, gain some, grow some? For many organizations, organic growth can be the most cost-effective way forward. Re-engaging with your old market is often easier than finding new markets these days, because the old market has already bought into the services you provide, and they already see the benefits.

4. Review the work you’ve been doing over the past year from a personal perspective:

Has it been fulfilling and emotionally rewarding? Has it brought contentment and a sense of achievement? Is it something you want to continue in 2022? Or do you want to pivot your work in a different way? Are there ways to distribute the work you don’t enjoy to others? If not, and you’re feeling stuck, is it time to sell?

When we can’t see the forest for the trees

Some organizations don’t take the time to do a year-end audit and plan for the year ahead because they’re too busy delivering on their current work. They see the cash coming in from the work they’re doing, so they continue to focus only on that. But this could be a near-sighted approach.

Avoiding a year-end audit prevents you from having a sustainable growth perspective. Your workload may become overwhelming regardless. And it may be too late to manage it in the new year. You’re scrambling. Burning out. Bleeding money. Doing the busy work, neglecting the thoughtful work.

While it can seem overwhelming, looking back at the road traveled with a view to what’s down the road ahead can prove highly cost effective.

Outsource the help you need

If you can’t stop the work you’re doing because it’s revenue generating, but you still need to review where you’re at and plan ahead, consider outsourcing the support you need.

An audit performed by a CPA firm can help you work more efficiently, protect your company from employee theft, and increase the accuracy of your accounting records.

As well, a business strategist like myself brings an objective perspective to your business and is able to point out things you didn’t see for yourself because you’re right in the midst of it.

I bring to the business over ten years of experience across multiple functional areas, including: mentorship and coaching, strategy design, financial analysis, market research, management training and development, marketing, and entrepreneurship.

Join me and chat more about this at the FREE
Leadership Connect Call on October 29th.

I’m excited to be leading a roundtable discussion amongst business owners on the topic “Auditing your business in 2021”. Please join a diverse group of mid-size business owners and myself to take part in the discussion.

As well, if you would like to have a private conversation about how well your business is performing
and how to make the most of market opportunities in the coming year, reach out to me for a complementary call:

Chantelle Quow
CQ Business Consulting Inc.
Turning Plans into Profit
Management Consulting Toronto, Ontario
Website: cqbcinc.com
LI Profile: linkedin.com/in/chantelle-quow
Email: info@cqbusinesscoach.com
Phone #: (647) 858-2195