As December rolls around and the year draws to a close, it’s time for small business owners to reflect, prepare, and set themselves up for success in the new year. The festive season might be busy, but taking the time to tidy up your finances can make a world of difference for your business. Here’s how you can wrap up your year with confidence and start the new year fresh.
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Reconcile Your Accounts
Before you pop the champagne on New Year’s Eve, make sure your accounts are reconciled. This means matching your financial records with your bank statements to ensure everything lines up. Reconciling regularly not only keeps your books accurate but also helps catch discrepancies early.
Pro Tip: Use accounting software to streamline the process and reduce the chance of human error.
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Organise Your Receipts and Records
A shoebox full of receipts isn’t just overwhelming—it can also lead to missed deductions. Take the time now to organise your receipts, invoices, and other financial records. Digital tools like receipt-scanning apps can help you store and categorise them with ease.
Why it Matters: Properly documented expenses can maximise your deductions and reduce your taxable income.
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Review Your Cash Flow
Cash flow is the lifeblood of your business. Reflect on your cash flow trends over the year and identify any patterns. Are there months when money is tight? If so, consider building a cash buffer to cover leaner periods in 2025.
Action Step: Use this time to forecast your cash flow for the first quarter of the new year, ensuring you’re prepared for any challenges.
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Maximise Tax-Deductible Expenses
You can claim a wide range of business expenses as deductions, if they are purchased for your business. Consider investing in:
– Office equipment
– Training programmes
– Marketing initiatives
– Vehicle maintenance for business use
Bonus Tip: Small businesses may also be eligible for the instant asset write-off scheme—check with your accountant to see how you can take advantage of it.
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Follow Up on Outstanding Invoices
Unpaid invoices can hurt your cash flow, especially over the holiday period. Before clients disappear for their summer break, follow up on any outstanding payments. A friendly reminder can go a long way toward getting invoices settled.
Pro Tip: Consider offering small incentives for prompt payment, such as a slight discount for invoices settled before year-end.
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Plan for 2025
The end of the year is the perfect time to think ahead. What are your business goals for the new year? Whether it’s increasing revenue, expanding your team, or launching a new product, your financial strategy should align with your ambitions.
What to Do Now: Create a budget, identify areas to cut costs, and set revenue targets. Partnering with an accountant can help you craft a solid financial plan.
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Celebrate Your Wins
Running a small business is no easy feat. Take a moment to reflect on your achievements this year. Did you hit a milestone? Expand your customer base? Learn something new? Celebrate those wins—big or small—because they’re a testament to your hard work and resilience.
Remember: Celebrating success isn’t just good for morale; it’s also a chance to build momentum for the year ahead.
Look Ahead with Confidence
Closing out the year doesn’t have to be stressful. By staying organised, proactive, and focused, you can ensure your business finishes 2024 on a high note and steps into 2025 ready to thrive. Remember, small actions now can lead to big wins later.
If you need help wrapping up your year or planning for the next, VBA is here to help. Contact us today to book your end-of-year review and start 2025 with confidence.
At VBA we specialise in strategic tax advice, offering tax and financial reporting for individual income earners, family businesses, tradies and construction companies.
Victor Bimrose Accountancy Pty Ltd (ASIC No. 1259423) ABN 53 010 957 294 is a Corporate Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361.
General Advice Warning: This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.
