It's not just a Year-end

The fiscal year of businesses does not necessarily coincide with the calendar year. Whether or not our fiscal year ends in a week, (less if we count business days), we must not be so overtaken by the holiday season as to forget that planning aside, there are fiscal issues that we must be watchful of.

Do our budget and financials vary minimally? Is there explanation for the variance? Is the blip a one-off incident or will we need to take the variance in consideration while preparing next year's budget?

We must look out for the year's expenses, asset purchases, write-offs, tax regulations, cash flow trends. Whether or not we have a growing business on our hands, the potential of future growth must be evaluated at this time of year. If we anticipate that the industry is in a lukewarm stage, we must make amendments to our projected growth trajectory. If we are in an overheated, continually growing sector such as real estate, we may need to re-evaluate our human resources.

We must not forget the accounting aspect of year-end which had best be left to a professional, if you do your ongoing bookkeeping yourself. Therefore, please contact me to discuss your year-end accounting requirements. I am highly proficient at a slew of accounting and computer software. I can also help in budget preparation: please contact me for a consult.

A very Happy 2016 to you and may it be one when your business thrives exponentially.

#smallbusiness #financialstatements #fiscalyear

Vanilla or ... Chocolate?

When it’s triple witching hour, the last hour of trading on the NYSE on the third Friday of the last quarter, fortunes can be lost or made. Stocks could be assigned below market value and if you are a vanilla sort of person, you should not be intrepid if expiration price is below market price.

Gobble-dee-gook if you are not into options. However, if you can bandy some phrases like in the money, out of the money, near the money and ah! Yes! Those Greeks really have me stymied! You might be looked at with approval in the moneyed circles. Or not. For if you come in with the wrong Greek and the wrong value, you will be shunned.

Once you get into options, you do get to like them. Even though frustration does creep in when stock prices move in the direction opposite to what you had anticipated. The little bit of pin money that you thought you had made, could end up in a large loss. Not to be sneezed at, eh! However, as in all investments, there is an element of risk. It must be added that the risk element in options is greater than in holding shares, and infinitely greater than holding bonds or GIC's. However, by the same token, if you win, you could win big. If you lose ... and the probability of loss could vary between 40 - 60% depending on the nature of the option.

So, Chicago! It’s not just a movie that you saw a while ago. It’s not just the home town of the current President of the United States. It also hosts the CBOE at 400 LaSalle Street. Whether you visit the CBOE or not in person, check out their website and there will be some familiarity with terms, that the likes of Warren Buffett learned in his early days.

You might decide that art is a safer investment.

Please contact your investment adviser for recommendations. We are available to provide a second opinion and do investment analysis. We prepare extensive Capital Gain schedules (Schedule 3, T5018) for Canadian personal taxes. #TrushaDesai.com

#investments #options #financialplanning

Make Strategy Work for You

The Oxford English Dictionary defines strategy as “a plan of action designed to achieve a long-term or overall aim”. Strategies can be traditionally economic, marketing, political or military. The Chief Executive Officer or Chair of a Board will focus on the overall future goals of an organization or charity.

As is often said, “How do you eat an elephant?” One bite at a time. We tend to forget this while strategizing sometimes. For the future goal remains long-term, but we do have to focus on the immediate, short-term, monthly and bi-annual goals that we must implement. It is essential that analysis of financial variances is done regularly so that top management maintains its checks and balances.

#strategy #smallbusiness #businessplanning #financialstatements