7 Questions to Reflect on 2024 and Plan for 2025.
Well, here we are, standing on the doorstep of 2025, clutching our calculators and coffee cups, ready to dive back into the world of numbers and spreadsheets. But before the business chaos starts rolling again, at Proactive Accounting, every year we take time time to pause, reflect, and perform what we like to call a “cashflow business self-audit” (no, not the scary tax kind).
Why? Because looking back at 2024 helps us set the stage for a more profitable and sustainable 2025. This January, while you have the time before all of your staff return to the office, we encourage you to do the same.
It’s time to be honest, if your cash flow wasn’t so much of a flow more of a trickle, it’s time to figure out why. So, grab a pen and a cup of coffee (or glass of wine, it’s still the holidays) and ask yourself these seven critical questions.
1. Do You Really Know Your Numbers?
Let’s start simple: run a Profit and Loss report through your accounting system. Did your revenue exceed your expenses, or was your end-of-year bank account emptier than your plate after Christmas dinner? Knowing your numbers is step one!
Practical tip: Break it down further. What percentage of your revenue went toward operating costs, salaries, or “business lunches” and other non-essential expenses?
2. Where Did the Money Go (and Was It Worth It)?
It’s time for an expense reality check. Did you really need that premium coffee subscription for the office or that “team-building retreat” at the five-star resort?
Pro tip: Review your recurring expenses. Are you paying for tools or subscriptions you no longer use? Better yet, renegotiate contracts or find more cost-effective alternatives.
(Yes, we know, changing your internet provider sounds as fun as doing your own tax return, but it’s worth it in the long run.) Look at what expenses are delivering value to your business and where you could be doing things differently.
3. What Services Made You Money—and Which Ones Didn’t?
Every business has its golden geese and its dodos. Which of your services or products were the real moneymakers in 2024? And which ones ate up your time and resources without delivering much in return?
Actionable insight: Consider phasing out low-profit services or bundling them with high-performing ones to maximise value. Remember, it’s better to do less and do it profitably than spread yourself thin chasing pennies.
4. Were You Running at Capacity—or Running on Empty?
What were your busiest (and most profitable) months? Were you fully booked, or did you still have wiggle room to take on more work?
Efficiency tip: If you struggled with bottlenecks, look at your processes. Automate repetitive tasks, delegate where possible, and consider bringing in more hands if you were consistently over capacity. And if you were under capacity… maybe look into a marketing strategy in 2025? (Although, we can’t really help you too much there).
5. How Much Money Are You Still Waiting On?
If you’ve got money owed to you, it’s time to pick up the phone, send those emails, and politely (but firmly) remind people that your business isn’t a charity.
Pro tip: Introduce a firm payment policy in 2025. Consider early payment incentives or late payment penalties. And yes, we know you hate the awkwardness—just blame your Accountant- we’re used to it.
6. Is It Too Easy to Forget to Pay You?
How simple is it for clients to pay you? If your payment process involves multiple steps, a carrier pigeon, and a blood oath, don’t be surprised if invoices get put on the backburner.
Quick fix: Streamline your payment systems. Set up tools like Stripe, PayPal, or direct debit options. Think of it this way: if someone can buy a $2 trinket online with one click, paying you for your services shouldn’t feel like a treasure hunt where the treasure is now yours and not theirs.
7. What’s 80% Done but Still Sitting on Your Desk?
Those projects that are almost finished? Wrap them up. Send the invoices. Stop procrastinating.
Reality check: You’ve already done 80% of the work, so don’t let perfectionism keep you from billing for it. Done is better than perfect—and finished work is better than unpaid work.
Let’s Review: How Well Did You Manage Your Cash Flow in 2024?
Let’s circle back to the big question. Did you have a cash reserve in 2024, or did every unexpected expense feel like a punch to the gut? If the latter, it’s time to prioritise building a financial buffer in 2025.
Pro tip: Set aside a percentage of every invoice into a savings account for rainy days. A great book that outlines a fool proof system is Profit First by Mike Michalowicz. If you haven’t read it, we highly recommend it!
If you made a few missteps in 2024 (and who didn’t?), the good news is that every new year brings new opportunities.
Make 2025 the year of better numbers, smoother systems, and fewer sleepless nights over cash flow. Check out our services to learn more about how we can help you manage your cashflow.
If you need help crunching the numbers or creating a rock-solid financial plan for 2025, give us a call on 07 5539 4143. We’ll help you make sense of your numbers so you can focus on what you do best.
