The holiday season is a time filled with busy days and nights, making it difficult to sometimes focus on the financial health of your business. It is easy to lose track of time during this season, when your clients want their work completed quickly.
For many, the end of the year means the end of the fiscal year as well, and brings another aspect into this busy season. We have come up with four bookkeeping tips to help you prepare for the upcoming year, while maintaining a focus on the financial health of your business.
Create a Budget
As mentioned, many businesses begin to slow down through the months of January and February. This means that you should create a budget for the months ahead that includes anticipated expenses. Take consideration of rent, payroll, accounts payable, and any other expenses that your business will incur. Now that you have an idea of your expenses, how does it compare to your current / expected cash flow?
There are many ways a business can save money, especially during the holidays when business is slow and the office may be closed for extended periods. For example, you may be paying for services that are not utilized during the holiday season. Simply cancel the subscription and wait for the new year to re-evaluate.
Remember to Collect Debts
Create a list of outstanding debts, and focus on collecting them before the holiday period ends. This ensures that you have the necessary cash available through this season, as well as the slower months of January and February (for many businesses). This is also beneficial as it allows you to start the new year with a fresh set of books.
The holidays are a perfect opportunity to recognize your clients, as well as those who have gone out of their way to help your business. This does not necessarily mean giving gifts, but a personal thank you email can go a long way in giving recognition to your customers. Want to go a step further? Send personal Christmas cards to thank clients for their business, and colleagues for their help. A small act such as this can have a large impact in building long term relationships and maintaining a loyal customer base.
Although these bookkeeping strategies should be followed year-round, the holiday season has been known to gradually creep up on us and take our focus away from the financial health of the business. By following these tips, you can regain your focus on maintaining a healthy cash flow, and celebrate the holiday’s worry free.
From the LedgersOnline team, we wish you a Happy Holidays and all the best in the New Year!
LedgersOnline provides affordable bookkeeping services for any business anywhere.