Keep Up With Your Accounting During The Holiday Season
The holidays are here, and most small business owners are in the thick of what is for most the busiest time of the year. It's easy to feel overwhelmed and move typical accounting tasks to the bottom of an already long to-do list. To help, we've compiled a list of ways to manage your accounting so you can enjoy the holiday season and start 2020 with ease.
Don’t Wait. Start Now.
The best advice we can give any small business owner is not to put off until tomorrow what should be done today. In other words, start preparing early. If you don't have your holiday promotions lined out, plan those out now. Do an inventory check and make sure your books are up-to-date. Reinforcing your business infrastructure for peak periods will make your accounting much easier to manage as the year comes to an end.
Technology is Your Best Friend
Technology is n't only the hottest give during the holiday season but it could be your solution to keeping on top of your accounting tasks. Accounting platforms such as Xero and QuickBooks Online can help categorize business transactions in a single platform. Making it easier for you to keep a handle on your inventory and keep customers satisfied.
Prepare for the Extras
Your employees work hard all year, reward them. Year end bouneses and holiday parties are a great ways to thank for employees for all they do - but these cost add up. Embrace the holiday festivites, but understand what needs to be done in order for everyone to have a happy new year. If you plan on providing year - end bonuses, make sure you document it accordingly. Research what the tax rate will be applied to the bonus and if you have questions reach out to your tax accountant or payroll provider for assistance.
Develop an Organization Plan
The holidays are stressful. With the demands on inventory and working to keep up with customer demands - many back offices become disorganized and suffer. Finding a way to keep your business operations organized may seem like a small task, but can have massive results. Develop a plan that had clear guidelines that reference when invoices need to get paid, how to handle late fees, and inventory checks and balances. A great way to get started is to complete one accounting tasks each day; this will keep your to-do list from piling up and keep you up-to-date and organized as you finish up the holiday season.
Ask for Help When Needed
There is no shame in asking for help. Hiring during the holiday season is one of the best ways to handle the influx of customers your business is likely to see. Consider outsourcing your accounting tasks to give yourself more time to focus on other areas of your business.
So, Why Does All This Matter?
Believe us when we say there is a reason we are so focused on numbers and financial statements this time of year. While you're focusing on marketing campaigns and promotions, we understand that numbers matter, and without a vast understanding, those holiday campaigns and promotions can go unfunded. Implementing the tips referenced above can not only prevent a massive headache at the beginning of 2020 but help you avoid accounting and bookkeeping issues during tax time.
Not only will these tips help you keep your sanity during the holiday season, but they will also help you keep your eyes on your cash flow. Cash flow can be tight during the holiday season, and you don't want to trigger any more significant cash flow issues. By preparing yourself now and working to manage your cash flow throughout the year, you can reduce the risk of negative cash flow during peak periods, including the holidays.