ACE advises: The start of a new year brings no shortage of forecasts. Some predict growth and expansion, others warn of tightening margins and uncertainty. The real challenge is not guessing which scenario will play out. It is preparing the business to handle either outcome.
In practice, that preparation comes down to managing two resources that quietly determine everything else: money and time.
From a financial standpoint, readiness is less about perfect projections and more about visibility. A few core areas tend to matter most:
Understanding fixed versus variable costs so adjustments can be made quickly if revenue shifts.
Reviewing cash flow on a rolling basis, not just historical profit and loss, to avoid surprises tied to payroll, debt or seasonality.
Knowing which expenses and investments meaningfully support growth, and which ones quietly erode margin.
Making tax planning an ongoing discussion, so decisions around timing, compensation and spending are intentional rather than reactive.
Time is the second constraint, and often the one that breaks first. Many owners are surprised when they look closely at where their time actually goes. Preparing your team for the year ahead often involves:
Clarifying decision ownership so everything does not bottleneck with leadership.
Identifying tasks that remain on an owner’s plate simply out of habit, even though they could be delegated or automated.
Being deliberate about meetings, reporting, and tools so time is spent making decisions, not managing noise.
When these two areas are viewed together, patterns become clear. Cash flow pressure often coincides with capacity issues. Growth stalls not because demand is lacking, but because leadership time is stretched too thin.
The goal is not to forecast perfectly. It is to build a business that can adjust without scrambling. Businesses that start the year with clearer financial visibility and more intentional use of time are far better equipped to navigate whatever the year brings.
ACE member Michael Reeder, CPA, is the managing partner at Reeder CPA Group. To hear more about more on this topic, register for ACE’s Jan. 21 program, “Two Hats, One Business: A CPA’s Toolkit for Managing Time and Money in the New Year”. www.consultexpertise.com/events