The holiday seasons are up and that means it’s about to be one of the busiest times of the year again. As we get busier, it gets easier to lose track of our finances, especially as a small business trying to keep up with last-minute holiday sales. But don’t worry, keep reading and you’ll be able to get on top of your holiday finances in no time!

Properly track holiday pay and expenses

It’s that time of year again for presents and holiday gift-giving which means employees would be taking more time off to celebrate with their families. Whether or not their off-time is paid, it would still be a sound business practice to keep payrolls updated and accounted for. 

Anticipate unexpected expenses

The holiday season can still be unpredictable. Some employees may ask for an advance, there may be a flunk in the inventory records, and credits that may not have been paid yet. This is why it’s important to anticipate these outcomes to avoid mixups, confusion, and having to stress about it when we simply want to enjoy the celebration. 

Re-strategize and have your records updated

It’s advisable to update records as soon as they come, more so during the holidays when we’ve got a lot on our minds and it would be more difficult to keep track of everything. So update your records as soon as they come to reduce the risk of losing accounts.

It would also be a good idea to revisit your accounting strategies and reanalyze your cash flow cycle. Knowing how much money comes in and out of your business allows you to make better and more accurate predictions for your next accounting cycle. 

There are a few ways you can do this

  • Consider setting up an additional bank account that you will use solely for the sake of your business. This can easily help you track and keep aside the finances of your business and your personal finances.
  • Make an agreement to pay larger bills in installments rather than all at once to ease overwhelming expenses. This also gives you time to prepare and plan your future expenses.

Clear off any debts and credits

Doing this prepares you for a fresh start after the holidays, as well as makes sure you don’t have to feel frantic about paying off some loans and credits after the season. Of course, we can’t forget about receivables we might have from others, again, we’ve got to keep track and update every penny that goes in and out of the business. 

It would be a great idea to keep your debtor’s portfolio in tip-top shape to minimize any potential losses. It would also be advisable to come up with an effective collection strategy as a means to help both you and your debtors to keep track of each other.

Get help from financial experts

We can never go wrong with asking for help ESPECIALLY when we’re managing a business. By all means, if you are unsure of how you should manage and allocate your finances, we have professionals for a reason. And it doesn’t take a lot out of your pocket if it’s for the betterment of your business.