As the holidays approach, this can be a very rewarding time for many small business owners. Consumers tend to shop more frequently, looking for the right gifts for their loved ones, which often provides a significant revenue boost.
However, leaders might not be aware that unless they ensure their financial reporting systems are 100 percent ready for such an increase, they could face a major problem. If a company that does not see a high volume of sales during other times of the year suddenly experiences much more traffic during the holidays, they're going to have to make sure that employees are ready. This not only applies to those in sales positions, but particularly to those in charge of recording income via accounting software.
This will mean more work and more numbers. Making sure the business has the best financial programs available equipped to handle a boon is often paramount in ensuring expenses and incomes are recorded correctly, and ultimately guarantees continuity.Prepare ahead of time
The majority of startups can expect to see at least a slight rise in sales during the last few months of the year, so Business Review Canada suggests preparing beforehand for the increase in numbers and hails the need to be perfect in logging numbers.
Sage Accounting 50 - Canadian edition vice president Nancy Harris told the source that planning is extremely important
before the holidays, but indicated that strategies have to be flexible to ensure companies can continue even if they should experience an unexpected bump in the road. Harris also explained that managers should always complete whatever financial operations they can, as opposed to putting them off for later, because they can pile up and create a problem.
Moreover, Harris told the news source that many entrepreneurs cite inventory tracking as a large obstacle during the holiday season. Adopting an automated inventory system is a good idea, and, when used in conjunction with accounting programs, can accurately allow managers to know where they are in terms of sales in real time when this hectic season rolls around.Avoid offering too many deals
Many startup owners believe that offering numerous holiday deals is a great way to draw in new customers and boost the entity's bottom line during this time of the year. While this is true in some respects, Go San Angelo reported that too many markdowns can actually have an adverse affect on the business's end result.
The news source noted that a way to avoid this is by only cutting costs temporarily
, as opposed to extended amounts of time, like the whole shopping season. This can create a large demand for the products at such a low price, which, despite the pay cut, can boost sales greatly.