How to Keep Up With Accounting During The Holiday Rush

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The holiday season is just around the corner, meaning small businesses everywhere are a few months away from the busiest (and possibly most stressful) season of the year. It’s not a stretch to say accounting can get pushed to the bottom of the to-do list when we’re busy. This year, don’t let the herds of shoppers ruin your holiday spirits or your business’ back office. We’ve compiled a list of ways to manage your accounting with ease throughout the upcoming season. 

Start Now  

The most straightforward yet vital tip we could give any small business is to start preparing early. Run an inventory check, plan out holiday specials and promotions, and make sure your business infrastructure and books are as reliable as ever. You’ll want this done before those holiday shoppers barge through your doors. Doing this will make your accounting much easier to manage and make you as jolly as ever.

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Yep, it’s that time of year again.

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Take Advantage of Software to Speed Things Up

New technology isn’t only the hottest gift to give during the holidays, but it could be your solution to keeping up with your business accounting. Accounting software is a tool that can quickly categorize your business transactions in a single platform. It requires minimal input on your part and allows you to get back to satisfying your customers. 

Depending on the software you can also implement it into different parts of your business. For example, ScaleFactor can automate bookkeeping, payroll, bill payment, invoicing, and even taxes. Taking a step back from focusing on your business accounting could be the solution to the most successful and stress-free holiday season yet. 

Account For The Extra Expenses 

‘Tis the season of giving. End-of-year bonuses, holiday parties, or even small gifts you’d like to hand out to your employees or partners all add up. As a business owner, you should be able to embrace the holiday festivities on the condition that you take into account all these extra expenses. Proper recognition and recording of any additional cost is a must and its advised to get help from a CPA to correctly account for these expenses.

This task can be easily managed by referring back to our first tip; start early. Plan out and take note of everything you’d like to spend as a business owner around the holidays before they get here. Doing this will make the expense recognition process much easier when the time comes for the best holiday party in your business’ history. 

Hire Some Help 

It’s never a bad thing to ask for help. Hiring help during the holidays is one of the most popular ways to handle the influx of shoppers. Whether that means hiring an accountant to manage your books or a store clerk to give you more time to focus on your business financials, both can be beneficial for your holiday prep. 

Stay Organized

Most small business owners can attest that the most stressful holiday seasons derive from a disorganized back office. Keeping an organized structure to your business operations may seem like a small task, but it has massive results. Make sure every process concerning your back office has clear guidelines regarding due dates, late penalties, and how-to-pay infrastructure. A simple way to get started is to do one accounting task a day. This breaks down a long list of to-dos into an approachable and straightforward process that keeps your small business organized. 

Need some help? Reference our 7 days of accounting downloadable guide for a walkthrough. 

Scalefactor eBook cover image

Yep, it’s that time of year again.

The results are real.

Why All This Matters

Trust us, there is a reason we are so focused on numbers and financial statements right before the jolliest time of the year. As much as you want to focus on your holiday marketing campaign and amazing promotions, the numbers matter. Jumping on these tips can prevent not only a massive headache but help you avoid any accounting-related issues that come from a lack of preparation. Here are some things to keep in mind when your accounting doesn’t seem like the top priority this holiday season. 

Tax Season

As most small business owners know once holiday stress begins to slow, the post-holiday tax season follows shortly after. This means that if your books are messy, the crunch to get things in order may start to take a toll on you. Following the steps above are ways to prepare for this tax season and make pulling together everything you need for taxes simple.

Cash Flow

These tips not only help your sanity during the holidays, but they also help you keep an eye on the important thing as a business owner: cash flow. If your cash is already tight, you don’t want to face any bigger cash flow issues. By preparing yourself now and continuously managing your cash flow throughout the season you can reduce this risk during and after the festivities. 

Think you’ll need some help during these upcoming months? Learn more about how ScaleFactor can help by requesting a demo today. 

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