Is Your Business Fit for 2025?
A Financial Health Check Inspired by Macy’s
Hard to believe that in just a few days we’ll be wrapping up the first month of the new year. It’s a good moment to pause and take stock—of progress made, or goals that may already feel harder to keep than expected. Consider this a gentle accountability check-in.
On a personal level, that might look like reassessing a new diet or fitness routine. For business owners, the idea of “fitness” applies just as much to the organization itself. A business is only as healthy as its financial foundation—whether you measure that through cash flow, operating margins, or the ability to weather unexpected pressure.
Setting goals is important. Execution is where things tend to break down.
And when oversight slips, the consequences can be significant—something the recent Macy’s delivery expense issue makes very clear.
A reminder from Macy’s
In late 2024, Macy’s disclosed that it had identified significant errors related to delivery and shipment expenses. According to public reports, a breakdown in internal controls—combined with reliance on a single individual—resulted in roughly $150 million in delivery costs being improperly tracked and concealed.
Macy’s may ultimately absorb the impact. Many smaller businesses don’t have that margin for error.
While there is likely more complexity behind the scenes, the core lesson is simple: even large, established organizations are vulnerable when controls, visibility, and accountability weaken.
For small and mid-sized businesses, this isn’t about fear—it’s about prevention.
What this means for growing businesses
As we close out January, this is a good opportunity to strengthen the financial “fitness” of your business by looking at the same types of breakdowns that contributed to Macy’s situation—and addressing them early.
Here are a few practical areas to focus on:
1. Strengthen internal controls
Strong internal controls don’t signal distrust—they create clarity and protection.
I once worked with a CFO who believed trust alone was enough and resisted implementing segregation of duties. I disagreed then, and I still do. Trust is foundational. But trust is not an internal control.
Clear processes, shared oversight, and separation of responsibilities protect both the business and the people inside it. When controls are in place, accountability improves—and preventable issues are far less likely to escalate.
2. Monitor expenses with intention
Technology can help surface issues quickly, but even simple practices make a difference.
Regular reviews, spot checks, and periodic audits—especially around high-risk vendors or categories—can dramatically reduce exposure. Oversight doesn’t have to be sophisticated to be effective.
I recall a situation where a freight carrier claimed a significant discrepancy between their records and ours. Neither team had ideal systems in place, and their accounting department had experienced heavy turnover. The result was a manual reconciliation process that took time—but ultimately created alignment and clarity for both sides.
Accuracy matters because financial data informs real decisions. When that data isn’t verified, the cost shows up later.
3. Revisit vendor relationships
Vendor contracts and terms deserve regular attention.
Clear communication, aligned expectations, and shared processes reduce misunderstandings and strengthen long-term partnerships. In the freight reconciliation example, resolving the issue also gave us the opportunity to improve terms and processes going forward—benefiting both parties.
4. Improve financial visibility
Forecasting doesn’t need to be perfect to be useful.
Even basic tools—spreadsheets, budgeting software, or lightweight forecasting platforms—can provide meaningful insight into cash flow, seasonality, and upcoming pressure points.
In several of my previous roles, we relied on simple models to anticipate lean periods and plan accordingly. Predictive insight isn’t about precision; it’s about giving yourself enough visibility to make informed decisions early.
5. Build a culture of accountability
Accountability isn’t about blame—it’s about learning.
Mistakes will happen. When they do, the goal should be education and improvement, not punishment. Clear policies, open communication, and mentorship create an environment where people feel safe taking ownership and correcting issues before they grow.
Strong teams are built through guidance, not fear.
Moving into 2025
The Macy’s situation is a reminder that financial oversight isn’t just about avoiding mistakes—it’s about resilience and readiness.
As the year gets underway, now is still a good time to assess your systems, processes, and visibility so your business can operate from a position of strength.
At IntelliChoice Solutions, I work with founders and leadership teams to identify vulnerabilities, strengthen financial structure, and support sustainable growth—before pressure turns into crisis.
If you’re ready to take a closer look at your financial setup and what it’s really supporting, let’s start with a call.
