We made it to the last leg of Q4! It’s December and you might be thinking about your profitability for the year. Profitability in your business is great! It means your business is growing and doing well. Profitability also means you will be taxed on your profit. Tax season is around the corner and some of you might be thinking of spending strategically this December to reduce that tax liability. Before you go on a business-related shopping spree, we’d like you to consider the following:
What will your cash flow look like in Q1 2022? Don’t rush to spend your cash on hand. Think about any seasonality in your business and about the goals you have for next year. You might find that trying to reduce a liability in the current moment might not look like a great idea when you’re managing your cash flow next year.
Be strategic with your spending. Think through your 2022 goals. Spend on the needs of your business. What expenses can you carry out now to get you prepared to hit the ground running in January?
Talk to us about Profit First Cash Flow Consulting. Need help identifying areas for spending and saving? Would you like to discuss your upcoming tax liability and how to manage your cash flow into next year? Make an appointment with SMG Business Services to discuss how you can get relief from the cash flow financial rollercoaster and stroll into 2022 stress-free!
It can seem difficult to smooth out cash flow throughout the year to meet your many business needs, but a good plan can help iron out those highs and lows. Don’t think of December only as the last month of the year, but as preparation for next year.
We wish you a Happy December!