Your bookkeeping year in review: what to analyse before your holly jolly Christmas
When December arrives, most business owners are thinking about slowing down, switching off, and enjoying a well-earned break. But before you do, a year-end bookkeeping review can save you stress, protect your cash flow, and help you start the new year feeling confident and in control.
You do not need to be a finance expert or spend hours buried in spreadsheets. Reviewing a few key areas of your bookkeeping before Christmas can make a big difference.
Here is what to analyse before you log off for the holidays.
Review your profit and loss
Your profit and loss report shows how your business has actually performed over the year.
Look closely at:
Overall profitability
Income trends across the year
Major expense categories
Are there any surprises? Understanding where your money is coming from and where it is going is the foundation of good financial decision-making.
Check your cash flow position
Profit does not always mean cash in the bank.
Review your cash flow to see:
How much cash you have available right now
Whether income and expenses are aligned
If there are tight periods you need to plan for in the new year
A clear cash flow picture means fewer unpleasant surprises in January.
Chase outstanding invoices
Unpaid invoices can create unnecessary stress going into the holidays.
Before Christmas:
Run an accounts receivable report
Follow up on overdue invoices
Confirm payment dates where possible
Bringing in outstanding cash can massively improve your end-of-year position.
Review your expenses for patterns
A year-end bookkeeping review is the perfect time to assess what you are spending.
Ask yourself:
Are there subscriptions you no longer use?
Have certain costs crept up unnoticed?
Where could you reduce spending in the new year?
Small changes here can have a big impact over time.
Reconcile your accounts
Reconciliation ensures that your records match your bank statements and credit cards.
Before the year ends, check that:
Bank transactions are fully reconciled
Expense categories are accurate
No transactions are missing or duplicated
Clean books now mean a smoother year-end and an easier conversation with your bookkeeper or accountant.
Look ahead to tax and compliance
December is also a good time to review upcoming tax obligations.
Make sure you understand:
What is owed and when
Whether funds are set aside
Any filings due early in the new year
This helps you avoid a post-holiday panic.
Set simple goals for the year ahead
Once you understand your numbers, you can plan with confidence.
Use your year-end bookkeeping review to:
Set realistic financial targets
Adjust pricing or spending
Decide where to focus your energy next year
Clarity now creates momentum in January.
Final thoughts
A year-end bookkeeping review does not have to be complicated or overwhelming. Spending a small amount of time reviewing your finances before Christmas can give you peace of mind and a much stronger start to the new year.
If you would like support getting your books in order before the holidays, GoodBookkeeping.com is here to help.
