Business

4 financial mistakes to avoid this winter

In the fractional CFO profession, we see business leaders forgetting critical year-end tasks as they check their minds and go on vacation. Here are the top 4 financial mistakes to avoid this winter.

Pay your deferred taxes on social security

Remember how the government let you delay paying Social Security taxes? In March 2020, the CARES law threw money at businesses in dozens of ways (the most memorable being PPP.) But most businesses also chose to defer paying their Social Security taxes for most of the time. from 2020.

This deferred invoice is due. You must repay half by 12/31/21 and the rest by 12/31/21 under pain of IRS penalties. Don’t rely on your payroll provider to do this automatically – you have to do it through the IRS website (more instructions in this article.)

Manage the risk of major resignation

In modern American businesses, the expense of employee turnover is too great for CFOs to responsibly ignore. Dozens of Inc.com articles have been written on The Great Resignation and all point to the same solution: take the time to take care of your employees. Simple to say, difficult to implement.

How can something so warm and fuzzy be a financial strategy? Budget training for your managers to improve their leadership. Use DCI consultants to bring justice to your organization. Give your managers more time to listen to and coach employees (which can mean fewer growth initiatives).

Increase your prices

If you haven’t already, you need to increase your prices. There are two reasons for doing this now. First, your costs have probably already risen or will increase in the coming year (maybe because the Great Resignation will soon take away key employees from you.) Second, everyone is raising prices now, therefore, by a From a marketing standpoint, you are a voice among the crowd. This means less shock and customer churn. If you wait until next summer to raise the prices, you will stay in the market and possibly scare away customers.

Get a loan before interest rates rise

With inflation rising, the Federal Reserve is expected to raise interest rates around March 2022. This means that NOW is a great time to borrow money before the cost of borrowing increases. Borrowing money is also one of the top 5 inflation strategies.

Happy Holidays everyone and hope you have a prosperous New Year!

The opinions expressed here by the columnists of Inc.com are theirs and not those of Inc.com.

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