How to Close Your Books Smoothly Before the Holidays

The festive season should be a time for business owners to relax and recharge – you’ve earned it! However, before you kick back, closing your books before the holidays is essential if you want to have a fresh and compliant start to the new year – and who doesn’t!

The Sherpa Bookkeeping team believe in helping businesses move forward with confidence – so we’ve put together some strategies to help you achieve a smooth and stress-free end to the year:

Start with Reconciliation

Begin by reconciling all your accounts. Match your bank statements with your accounting records and check for missing transactions or duplicates. Don’t forget to include credit cards, loans, and petty cash in your review. This will ensure your financial data is accurate and ready for reporting.

Clear Outstanding Invoices and Bills

Before the holiday rush, send reminders for unpaid invoices and settle any outstanding supplier bills to avoid late fees. If cash flow is tight, consider offering early payment incentives to clients. This proactive approach will help you maintain liquidity during the festive season.

Update Payroll and Superannuation

Ensure all wages and entitlements are processed correctly. Schedule superannuation contributions before deadlines and prepare for any holiday loading or seasonal staff payments. Staying on top of payroll obligations keeps your team happy and your business compliant.

Secure Your Data

Back up your financial records to protect against unexpected issues. Cloud-based systems offer easy access and peace of mind, but make sure your backups are current and encrypted. This step is crucial for safeguarding sensitive information.

Prepare for BAS and Tax Obligations

Review GST coding for accuracy and organise receipts and expense documentation. Schedule a quick check-in with your bookkeeper and BAS agent to ensure everything is in order, because a little preparation now can save you from big headaches later. And that’s where working with Sherpa pays dividends: we offer a professional bookkeeping service, and we’re BAS agents too – we’ve got you covered!  

Forecast January Cash Flow

The festive season often brings higher expenses, so plan ahead. Set aside funds for the quieter new year periods, and use forecasting tools to stay in control. Getting ahead of the game will help you avoid financial stress when business slows down.

Closing your books before the holidays doesn’t have to be overwhelming. With the right support, you can enjoy the festive season knowing your finances are in order – and the Sherpa team are here to help you finish strong and start the new year with confidence.