Set a holiday budget for your small business

Before the season kicks off, create a simple holiday budget that includes every extra expense you expect — team gifts, client appreciation, holiday bonuses, marketing promotions, charitable giving, and seasonal events. Add a small buffer for last-minute surprises.

Record your budget in QuickBooks Online or your accounting software so you can track actual spending in real time. A clear budget keeps your holiday spirit high without draining your profits.

2. Track your cash flow closely

Holiday timing can be tricky. You might see a spike in sales, but payments can slow down as clients take time off. Build a simple cash flow forecast for the next eight weeks that includes income, expenses, payroll, and tax payments.

Review it weekly. This helps you spot any gaps early and make small adjustments — like moving a marketing campaign sooner or following up on invoices — so you don’t run into cash flow problems during slower weeks.

3. Take advantage of small business tax deductions

The holidays often come with business expenses that may be tax-deductible. That can include employee gifts, holiday parties, business meals, and certain year-end purchases.

Keep every receipt and note who, what, and why on each one. If you’re not sure what qualifies, ask your bookkeeper or accountant to review and tag the expenses properly. Staying organized now makes tax time much easier later.

4. Review outstanding invoices before the holidays

Before you close your laptop for a few days off, review your Accounts Receivable Aging report and follow up on any unpaid invoices. Collecting those payments now can give your cash flow a big boost heading into the new year.

Keep your message simple and kind:
“Hi [Name], I noticed invoice #[###] is still open. As we wrap up the year, I wanted to check in and make sure everything looks good on your end. Here’s the payment link: [link]. Thanks so much!”

Consistent follow-up is part of strong small business cash flow management — and it helps you start January on solid footing.

5. Manage your inventory before year end

If you sell products, now’s the perfect time to take stock. See what’s selling quickly and what’s sitting on the shelf. Offer discounts or bundle slower-moving items to clear space and free up cash.

Accurate inventory counts also make your year-end bookkeeping smoother. Make sure your counts match what’s recorded in your system so your balance sheet is correct when it’s time for taxes.

6. Plan for vacation coverage

Taking time off is good for everyone — including you. If your team members or contractors are taking vacation, outline clear coverage. Decide who will handle client inquiries, payroll, and expense approvals while you’re out.

Setting clear expectations helps your business run smoothly and gives everyone permission to actually rest and recharge.

7. Work closely with your bookkeeper or accountant

Your bookkeeper is your best ally during the holidays. They can help you tidy up your books, spot last-minute deductions, and make sure your reports reflect reality.

Here’s what to check together:

• Reconcile all bank and credit card accounts
• Clear “Ask My Accountant” transactions
• Review loans, distributions, and fixed assets
• Confirm 1099 vendor info and W-9s are up to date
• Verify payroll and sales tax filings are accurate

If you work with a bookkeeper in North County San Diego (hi, that’s me!), now’s the time to review your numbers so everything’s ready to hand off to your tax preparer.

8. Plan ahead for taxes

Don’t wait until January to start thinking about taxes. Review your year-to-date profit and set aside money now. If you use the Profit First method, make sure your Tax account is fully funded as those holiday sales come in.

Confirm all your income and expenses are properly categorized in QuickBooks. If you made big purchases, save your receipts and documentation. A little organization now prevents a lot of stress later.

Quick year-end bookkeeping checklist

• Reconcile all bank and credit card accounts
• Review Accounts Receivable and Accounts Payable reports
• Attach receipts to all holiday and business expenses
• Count and adjust inventory
• Save December payroll reports and retirement contributions
• Run a year-to-date Profit and Loss and Balance Sheet
• Schedule a year-end review with your bookkeeper

Start 2026 organized, compliant, and confident

Holiday bookkeeping doesn’t have to feel overwhelming. With a little planning — and the right support — you can close out the year strong and start fresh with clean, accurate books.

If you need help cleaning up your books, managing cash flow, or preparing for tax season, partner with me at Stout Bookkeeping. I help small business owners stay organized, compliant, and confident all year long.

With me on your side, you’ll step into 2026 with calm, clarity, and financial confidence.

Cheering you (and your business) on,
RaeAnn ✦ Founder of Stout Bookkeeping

👉 With me on your side, you’ll have clear, tax-ready books and the peace of mind to focus on what you do best.