Getting bogged down with tasks to accomplish before the holiday break?
For some businesses, it is the time to slow down and catch up on pending tasks before the long holiday break. Yet other business owners find this season their busiest – longer hours at work and extensive workload to make it in time for the much-awaited break from work.
Regardless of your situation, here are 5 bookkeeping tips to help you prepare for the holiday season.
Make a list and check it twice
Create a list of the records you are working on or need to keep for compliance. It saves time from sifting through many documents or losing some paper works. Some of the important records to include on your list are:
- Financial statements
Check your cash flow
Holiday season is a time when you may have more expenses. Business closure is another challenge because there is no invoicing and collection of receivables. The inability to keep a healthy cash flow risks your business suffering from a loss.
Before the holiday break:
- Check if there are past-due invoices to be collected
- Send out invoices ahead of time
- Pay bills on time to avoid affecting your business reputation or credit rating
Before the holiday break, check if there are past-due invoices to be collected. Make a good habit of sending out invoices ahead of time. Pay bills on time so as not to affect your business reputation or credit rating.
Separate business finances from your personal transactions
Do not use the same bank account for business transactions and personal finances. It keeps your bookkeeping unorganised and difficult for your trusted bookkeeper to monitor.
Whether you are a start-up business, open a business bank account so there is a central point for your business transactions. Your savings accounts and credit cards should be for personal spending only.
Review your terms and payment options
Check if your terms and payment options are applicable to your business situation. For example, you may want to implement a late payment penalty if you are having problems with your cashflow.
Consider checking if your modes of payment are accessible for your clients too. For instance, does your website accept online payments? The key here is ensuring payments are quick, guaranteed, and safe.
Take note of December and January deadlines
It is best to consult a trusted bookkeeper with your compliance deadlines. One of the benefits of having a bookkeeper is having an expert looking after your bookkeeping needs. Liaise with your bookkeeper if there are records you must prepare ahead of your compliance deadline.
Need help with your bookkeeping this holiday season?
Focus Bookkeeping provides quality bookkeeping and BAS services for many businesses. We offer solid business advice to ensure you understand the financial and obligatory perspective of your business.