How to Prep Finances for the Holiday Season
The Financial Rush Before the Holiday Festivities
It always feels like the holidays sneak up before we’re ready. For most business owners and nonprofits, the days fill up fast with meetings, events, and a dozen things to finish before year‑end. Somewhere in the mix, bookkeeping tends to slip down the list. A little preparation now can make the next few months far less stressful and help you start the new year feeling confident instead of catching up.
Review Your Year-to-Date Finances
Start by checking where you stand. Run your profit and loss and balance sheet reports, then compare them to your budget or last year’s results. Are your expenses where you expected them to be? Still have a few invoices waiting to be paid? Send a friendly reminder or quick note to those clients now so everything’s squared away before the year closes.
Manage Inventory and Seasonal Sales
If you sell products, now’s the time to take stock. Review what’s on hand and what’s been flying off the shelves. Plan to restock your best sellers early, and consider small sales or bundles to move slower items. Keep an eye on your reorder points so you’re not caught short (or buried in boxes) during the busiest shopping weeks.
Check Receivables and Payables
Cash flow can get tight this time of year. Follow up on overdue invoices while there’s still time for clients to pay before the holidays. On the flip side, plan your outgoing payments strategically so you’re not draining cash right before year-end. Even offering a small discount for early payment can help speed things up and keep the books balanced.
Budget for Holiday Expenses and Giving
The holidays often come with extra costs such as employee gifts, bonuses, client appreciation, or charitable giving. Set a simple budget for these so surprises don’t sneak up later. Review your existing charitable giving category in QuickBooks to ensure it’s properly classified for accurate year-end reports. And, if giving back is part of your mission, make sure your donations reflect your values and impact goals.
Prep for Taxes and 1099s
Getting a head start on tax prep saves you headaches later. Review contractor payments and make sure you have updated W-9s for anyone who’ll need a 1099. Scan through your expense categories, especially meals, travel, and equipment, to make sure everything’s coded properly. A quick meeting with your bookkeeper or accountant now can help you avoid the January scramble.
Wrap Up the Year with Reflection and Gratitude
Before diving into next year’s plans, take a moment to appreciate how far you’ve come. Reflect on what worked well and what could be improved. Maybe jot down a few lessons or wins in a simple gratitude journal for your business. Gratitude isn’t just good for morale—it helps shape a clear, grounded mindset for planning the year ahead.
Finish Strong, Start Fresh
Year-end always seems to sneak up fast. Instead of trying to do it all, just focus on what really needs finishing. Check off a few must‑dos, leave what can wait, and call it good. The aim isn’t to get everything perfect—it’s to give yourself space to breathe and enjoy the holidays without your to‑do list following you around.
