With small business bookkeeping advice you can use to weather the hustle of the holiday season.
You’ve had this date marked on your calendar for months. The custom packaging is ordered. The extra staff hired. The clever coupon code printed on 1,600 flyers.
Cue record scratch.
Okay, maybe you’re not that prepared. But since 25-50% of your annual revenue probably comes from holiday sales and/or service deals, it’s an important time of year. And it can get quite expensive with all the seasonal extras.
So we’re bringing a little cheer and several key accounting tips to help you save big this time of year.
Tip 1: Create a Detailed Holiday Budget.
Yes, you’ve already got your normal budget for the kind of income and expenses you see all year. But everything is a little extra during the holidays. So building a budget specifically for November-December will help you track when those extra costs and revenue are going to impact your bottom line.
Some things to keep in mind are:
Microsoft Excel has templates for both event and trip budgets that can easily be adapted to reflect your holiday spending.
Tip 2: Stock up on Inventory Early
If there’s something you know you’re going to need during the holiday season–and it’s not perishable–then order it well in advance. This can be difficult for small businesses or sol-props with little-to-no physical storage space.
But buying early will save you from scrambling at the last minute and overpaying for products you routinely stock. Plus, some specialty items need extra time to deliver, so you avoid the surcharge of expedited shipping when you order them ahead.
Tip 3: Negotiate with Your Suppliers
Extra inventory means more purchases than usual. While you’re at it, why not see if your supplier offers a discount on bulk orders? Or maybe they have a sale going on for customers who shop early. If you’re near a drop-off/pick-up location, you could cut out the shipping by driving by and grabbing the package yourself.
Many companies now offer payment terms based on installment plans alongside their normal merchant services. (You’ve probably seen Klarna and Affirm pop up at online checkouts). If you need to purchase a large piece of equipment or rent extra chairs during the holidays, you could see if the vendor you’re purchasing from offers that kind of plan. (Just don’t forget to add the future payments to your succeeding budgets.)
Tip 4: Digitize Your Marketing
A lot of online marketing tools, like email campaigns and social media, can run while you sleep. That means you can (metaphysically) do two things at once: promote your business and fill orders or chat with customers simultaneously.
Some online platforms, like Mailchimp, offer automated pathways for emails, allowing you to repeatedly reach hundreds of contacts who engage with your online shop. Many offer 30-day free trials, which may be all the time you need to reach your holiday audience with a seasonal coupon code.
The main benefit of digitized marketing is that it maximizes your time, which is at a premium during the holidays. Plus, contacts who follow or join your channels will likely stay after the seasonal promotions are over.
Right now, the overall program and its benefits are being handled by a new division of DEED–the Department of Employment and Economic Development. Resources for navigating the onset of Minnesota Paid Leave–like frequently asked questions–can be found at their site.
Tip 5: Review Your Expenses
This goes hand-in-hand with keeping a dedicated holiday budget. By monitoring your holiday spending, and analyzing it for turnover, you can track where extra cash flow is going.
Maybe you already ordered Christmas decorations in October–but you forgot about them once they arrived. Luckily, you recorded the purchase and can verify that yes, those garlands are still around here somewhere. Send an elf to go looking in storage rather than accidentally putting them in your cart again.
If you need help tracking your holiday accounting, we recommend these 7 apps for all small business owners.
Feel like the holidays might be getting too hectic already? No worries–we have your back. We’re always here as your small business support in Pequot Lakes, Baxter, and Aitkin, Minnesota.
We specialize in bookkeeping and payroll services, tax return preparation, small business consulting, and spreadsheet wizardry. So if your plate gets too full to tackle the books, just contact us here.
