3 Holiday Tips for Small Business Accounting

Holiday accounting requires special preparation.

It was the week before Christmas and all over town,

Every business was busy,

Other than us,

We are dead.

Is this you? This time of year is a great time for retailers, but it can also be slow for service businesses. Unfortunately, January will not bring much relief, as the new year usually begins slowly.

This time of year can be costly. Your wallet will be drained by office parties, employee gifts, bonuses, and client gifts. So how do you spend money when it isn't coming in as fast as it used to?

These are three small business accounting tips that will help you get through.

Keep your cashflow in check 

Keep track of your books, no matter how slow it gets. Keep track of what work you are currently working on and the time and costs that you bill. Don't let the joy of spending distract you from the reality of your cash flow. Financial hangovers can be the most distressing.

Chase late payments

It's time to make your money. First, contact those who are behind on their payments. Be friendly and let them know that you are available to process their overdue amount. Start by sending an email to your clients. Begin by thanking them for their business in the past year. Next, tell them about your holiday hours and thank them for promptly submitting your payments during the holiday season. Then, get out there and do it. This approach should result in a positive response. 

The same applies to managing your creditors and bills. Do not delay in paying your bills, as this could cause irreparable damage to business relationships. Instead, talk to those who owe you and try to reach an agreement.

Check out your terms and payment options

You might consider revising your payment terms if you feel things are tight or you are having trouble meeting your obligations. For example, you may consider taking a portion of the quote as a down payment for new clients and projects before you start work. You may also want to reduce the time frame for payment from 30 to 15 business days. Or introduce a late payment penalty. You can also make these changes public in writing. 

Does your website accept payments? It should. This is the best investment a small business can make to guarantee on-time, quick, and guaranteed payments. These last few weeks of the year are an excellent time to meet with your web designer to add a payment option to your website.

If you plan well, your holiday season can be a financial success. As always, we are here to assist you.