As we enter the last quarter of the year, many business owners are counting the weeks until December. With the rush to sign clients and boost cash flow ahead of the festive season, it’s easy to forget one very important thing – your company’s annual review.What an annual review is – and what it isn’t
Many people find it confusing to tell the difference between an annual review and an annual report – and it’s easy to see why.
An annual review is a recap of your company’s performance since January. It takes turnover, cash flow, profit, product development, marketing, and other areas of your business into consideration. An annual report is focused on financial information, and is usually compiled in February when your company files its tax returns.
Behind the scenes – what goes into your annual review
The idea behind an annual review is that it lets you improve on your performance by finding out what your business did right and wrong over the past year.
While most business owners are happy to hear about their strong points and good decisions, it takes a special kind of entrepreneur to embrace their mistakes and learn from them. The best kind of annual review takes an objective look at the company’s performance, answering these questions:
- How much money did the business take in this year?
- Did the business take in more or less money than last year?
- What costs were involved in running the business?
- How much profit did the business make?
- Is this profit still in the bank, or has it been spent?
- How many new products or services did the business create?
- How many new clients did the business sign?
- How many existing clients did the business keep?
- Did the business hire, fire, or retrench any staff this year?
- Did the business borrow any money this year, and if so – how much?
These basic questions will help you to understand your company’s performance over the past twelve months – and will allow us to work with you to streamline your business for bigger income and profits.
Producing your annual review – what we need from you
The Northwood team is ready to help you take your business to the next level in 2015 – but we’ll need you to provide us with a few things:
- A copy of your company’s latest financial records
- Your client list for the year
- A list of any new products you’ve developed and how well they’ve sold
- A document which tells us your vision for the business, and how happy you are with your goal setting for the year.
Once you annual review is completed, we’ll schedule a meeting with you to discuss your company’s performance this year. By working with you at every step of the way, we will help you to set ambitious goals for the New Year – and give you the support you need to achieve them.
For more information on annual reviews, and to get the ball rolling on this year’s review, contact Northwood today.