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Best Tips for Your Bookkeeping This Holiday Season

The biggest season of festivities every year is coming upon us. As a business owner, what should you do in order for your bookkeeping tasks to get lined up well before the year-end festive season? Prepare, prepare, prepare.


Here are some of the best tips for your bookkeeping this holiday season.


Payroll


Mistakes in the payroll are made most common during the holiday season, since a lot of business owners end up having to process their payroll manually. This is because their bookkeepers are usually on vacation already. Here are several ways to avoid mistakes in the payroll:


  • Get your part-time or full-time staff members to apply in advance for their holiday season leave. Ask your business accountant or bookkeeper to make payments that are scheduled when your staff are away.

  • Have a payment schedule that will lead up to the seasonal festivities' period. This way, in case anything comes up, you can log in to your online banking account and adjust the payment before the due date.

  • If you see any transactions that seem unusual, in order to avoid unnecessary legal involvement, consult your payroll expert.

  • Plan your casual staff roster in advance, and do so well. Have a solid idea of the precise number of hours they will work.


Payable Accounts


A key to your business' success is the relationship you have built with the suppliers you have. In order to keep them happy, you should:


  • Ensure that you're ready for payments during the holiday period that are quite hefty. Make a note of these items in the forecast of your cash flow.

  • Write your suppliers politely and ask for your bills to come in before December 10. Be sure to note that all invoices received after will end up being paid after the festive season is over.

  • Use an automated scheduled payment function instead of, say, paying 20 or so days before the payment due date.


Accounts Receivable


It's important to manage your cash flow well enough during the festive season so that your employees’ paychecks will not bounce. Not having adequate funds in your bank account will cause a number of issues. In order to avoid getting into a situation like that:


  • Avoid sending invoices on the last day of the year, December 31, since they won't be paid by the time February 28 rolls around, especially if your income is recurring.

  • Ensure you have a cash reserve that is sufficient enough to cover the full salaries of your employees. Make sure it is at least two months' worth so you can be fully prepared no matter what happens.

  • Issue your invoices by December 10 and add a little personal note along with them. This way you can properly explain how you are trying to assist your clients' accountants or bookkeepers keep payments organised.


Conclusion


Bookkeeping during the holidays can be quite stressful, and leaves room for costly mistakes. Hiring a small business accountant will help streamline a lot of things. Hire a professional so you can have a stress-free holiday!


In search of a small business accountant from the Gold Coast you can trust? Contact New Wave today! We provide end-to-end accounting and bookkeeping services that help scale and grow businesses.


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