The festive season is here, and while it’s a time for celebration, for business owners, it can also be a hectic time filled with year-end accounting tasks that are easy to push aside. Between Christmas parties and the final push to meet deadlines, it’s easy to overlook things that could cause problems later. Here’s a list of common year-end accounting mistakes to avoid, along with tips to help you wrap things up smoothly.
Common Year-End Mistakes To Avoid:
1. Don’t Skip the Reconciliation Party
It’s easy to overlook reconciling your accounts during the holiday rush, but leaving it until the last minute can lead to messy discrepancies that are hard to fix later.
Take some time to go through your bank accounts, credit cards, and petty cash before the year ends. It’s one of those things that’s so much easier to handle now rather than later.
2. Don’t Let Holiday Spending Snowball
Holiday gifts, bonuses, and office parties – while fun – can sometimes blur the lines between what’s deductible and what’s not.
Keep track of receipts, and be sure to categorise those holiday expenses properly. The last thing you want is to discover you’ve missed something that could have been written off come tax time.
3. Get Your Payroll in Check Before the Festivities Begin
Planning to give out bonuses this year? Don’t wait until the last minute to process them. Payroll deadlines are easy to miss during the busy season, and if you’re not careful with PAYE calculations, it could cost you.
Get this sorted early so you can enjoy the holidays without worrying about penalties.
4. Send Out Those Invoices Before the Holidays Take Over
The holidays are a time to slow down, but your invoicing shouldn’t be part of that. Delaying invoices can hurt your cash flow, especially as the year wraps up.
Make sure you send out all outstanding invoices before the festive season kicks into full gear so payments don’t slip into the new year.
5. Don’t Forget Your VAT Returns
If your VAT quarter ends in November, it’s easy to forget the deadline amidst all the holiday buzz. But missing your VAT return deadline could mean fines and stress you don’t need.
Set a reminder to submit your returns before January 7th – so you can start the new year on the right foot.
6. Don’t Skip Your Financial Check-Up
Year-end is the perfect time to assess your financial health and think about what’s coming next. Failing to review your cash flow, profit margins, and tax position now could mean starting January without a clear plan.
Take a moment to look back at your financials and make sure you’re set up for success in the year ahead.
Looking Ahead: Plan for a Successful 2025
Now that you’ve tackled the year-end chaos, it’s time to look forward. Setting up a financial plan for 2025 can help you avoid these same pitfalls next year.
Need help getting started? We’re here to guide you through the process and ensure your business is ready for a strong year ahead. Contact us today.
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