As 2024 draws to a close and in the merriment of the old year wanes and the year new begins, it’s important to take personal and professional stock of how the year progressed. Honest reflections will lead to learning points, strategy, and goals in the new year. 

As Fractional CFOs, we consistently examine the financial performance of our clients’ companies — and take steps throughout the year to continue positive trends and eliminate negative ones. 

Here are some ways that business owners should think about their end-of-year evaluations and areas to scrutinize:

1. 1. 1. Personnel: Staffing is important, of course, and personal relationships will always be integral in an employee/employer dynamic. However, management must have the ability to evaluate, and separate, the performance of the job from the individual performing it. Although it sounds cold, ineffective employees in your building can easily harm the morale of the department that he or she works in. Having annual evaluations that are both documented and clearly communicated are necessary to ensure a positive and productive culture that is focused on the operational goals designated by the business leader. 
      2. Financials: Effective key performance indicators (KPIs) established during the budgeting and forecasting process help to ensure that your company is optimizing its effectiveness at all times. As your year draws to a close and you start to focus on 2025, take time to complete a “performance scan” — examining the prior year as well as the budget for the current year. This deep dive will not only increase your knowledge but it will inform your advisors as well, resulting in increased cash flow and overall efficacy.
      3. Vendors: It’s easy to procrastinate vendor evaluation on a consistent basis. The reality is that if you are not scrutinizing the people who supply your goods and services you are missing an opportunity to save money and enhance the quality of your products. Checking on expense areas such as insurance, medical costs, and key components to your manufactured goods will help you to keep your costs in check and afford you peace of mind knowing that you are surrounding yourself with the best for you and your clients.

Keeping an eye on the dashboard is always a good idea. But every so often, it is good to look at the rearview mirror to see what you accomplished and what you can improve upon. An honest and transparent assessment of your business will support your professional and personal growth. 

Take-away: If you need assistance in your assessment of ‘24 and how to optimize ‘25, reach out to Brian at info@acceleartingcfo.com.