If December is your Year End...

Now is the time to start preparing for year end. I have found over the years that the effort you put in this month is only realised in the following month. So if you want to get great Year End results you  have to start the process now.

The first thing you have to do is to generate some urgency around the year end results and impress on everyone why they should help resolve queries and deal with all outstanding issues before the end of November. To really succeed you need the support of senior management and ask their help by reviewing a list of outstanding issues on a weekly basis.

It is far more effective if you organise your list by person rather than by reason. For example if you say that you have 57 pricing issues, no action can be taken. If you say Tom Smith has 15 unresolved issues totalling €23,000 - that will get sorted. If you create a league table by culprit, nobody wants to be on that type of list so your results will improve, particularly if you let each person know a couple of days in advance of issuing the report. That way they have a chance to address the issues and if they don't it won't come as a shock to them when questioned by Senior Management, the most common type of defence is "Nobody told me!"

For best results, if you can convince the MD that there is €X on the 90 day column, and agree a bonus for all staff based on a value that is collected between now and the end of the year. That way you will be guaranteed the support of all concerned, who now have a vested interest in making sure all issues are addressed.

Go through your old accounts and put an action place to make sure they are either collected, resolved or even written off if uncollectable - there is no point is carrying forward balances that will never be collected and there is no point in writing off balances that can be collected, so leave no stone unturned.

Use November to let your key customers know that December is your Year end and make arrangements to ensure the account is paid before December 31st. For customers who pay by cheque, getting a post dated cheque for 31st December collected before Christmas can solve all problems. For EFT payments and Direct Debit customers, December should be the same as any other month. 

In Ireland, most companies will close on 23rd December and reopen on 4th January. You have to know who is working between Christmas and the New Year and who is not.

I know it may sound harsh, I would recommend that your credit department is open between 28th December and 31st December to enter and allocate all payments received, and to arrange payment from the companies who are working. All 2015 billing should be completed and posted on the 31st December. All Credit Notes, Journal Entries and write off's should be completed by this date as well.

This is traditionally a quiet time in business and can be used to get ready for the new year ahead. There is plenty of time for holidays after the year end has been delivered and the auditors have gone.