The quarterly ending is a busy time for Accountants. The 3rd Qtr is of particular importance as the last opportunity to effectively rally is at hand. Many businesses lost months of production during shutdowns and some are still unable or not allowed to reopen or open with capacities that provide survival. I fear many businesses will not reopen. I feel badly for all and my offer to give some free advice/service stands to those who want to try.
With the 4th Qtr now in play, I recommend that businesses inspect their numbers closely to see what is working and what is not. Obviously more focus on what works can help make the 4th Qtr a better one. Knowing where revenues are coming from and what is driving them can help place more attention on targeted marketing. Try to avoid just throwing money at it and be specific by having targets. Three months can make a big difference in the year so keep your head up, eyes bright and focus. Of course, we are all concerned about safe health practices and I suspect most will follow the guidelines that protect workers and customers alike. The balance to strike is being safe while producing at a good pace. I have a few clients who are doing as good as they did pre-covid. My hat's off to them. I also have a few clients that are having a tough time of it. But they are trying and I admire that.
As the 4th Qtr progress, unless you are depleted, I suggest keeping a lid on spending. That doesn't mean to stop buying needed supplies but make sure what you do buy can be converted to revenue in short time frames. No stock ups that will last into 2021 even when a discount is offered. Remember, letting others decide when and how much you buy is abdicating control. If you need help deciding what is a reasonable purchase or level, I can help. Historical data properly evaluated sheds a lot of light so we can do that and arrive at much better than mere guesses. And hard as it may be, put soome cash in reserves.
2020 has been a very unusual year. But a little extra focus now in the 4th Qtr can help it rally to a better ending than you might have thought possible.
Good Luck and get to work.
Best,
Donn Marier
DM-Your Own CFO