We’ve previously written about Tips for Business Bookkeeping in the Summer and wanted to follow up for another busy season. You may think that time of year doesn’t matter for the books, but there are several tips for business bookkeeping in Christmas.
1. Track Your Expenses
As a business, you may have extra holiday expenses which can be deducted on your annual tax return. These holiday expenses include but are not limited to:
- Physical business holiday gifts from $4 up to $25.
- Gift cards – especially to your business – may not be eligible for the deduction.
- Holiday cards and postage sent to business contacts.
- Holiday decorations for the office.
- Your Christmas party including venue, food, beverages, etc.
- Any extra holiday workers needed for the busy season.
Did you know? The average American shopper is expected to spend $1,638 on gifts and other expenses for Christmas in 2024, which is up 7% from the previous year? Source: Demand Sage
2. Don’t be Afraid to Regift
Not everyone loves scented candles, bath soaps, novelty clocks, and other gifts that may have seemed like a good idea for the give. It’s likely you have at least one or two of these laying around your home or office. Don’t be afraid to regift these to anyone but the original sender. Of course, these cannot be tax deducted but will free up some space.
3. Use Your Down Time Productively
You will most likely have a few days to weeks off coming up if you are a white collar business. Use this downtime productively by cleaning, organizing, and getting your office ready for the upcoming year. It’s also a great time to gather all receipts and organize everything if you don’t have a bookkeeper to do it for you.
4. Sell Your Old Stuff
The end of the year usually comes with plans to buy new equipment, office furniture, and other items. Don’t throw them out or let them grow stale in storage. There are tons of places you may sell these locally, such as NextDoor and Facebook Marketplace. Additionally, you may sell all sorts of used items online on Amazon, Poshmark, and eBay.
Did you know? Ebay alone has over 159 million users worldwide who average between 35 and 64 years old and is often ranked the best place to sell? Source: Vendoo
5. Lay Off the Credit Cards
Interest rates are at their highest in years, and this includes credit card interest. That $25 holiday gift can end up costing you hundreds should you only pay the minimum each month. Instead a good rule of thumb is: if you can’t pay the balance each month, don’t charge it.
6. Keep Relationships Open
Your existing and prospective clients have a lot going on. Be sure to reach out to them when appropriate to remind them you are there and ready to offer your goods and services in the coming year. We like to use our calendars to set reminders to get in touch or follow up with those who need us after the holiday season.
More Business Bookkeeping in Christmas and Beyond
Do you want to use your Christmas season to save even more and plan better with a bookkeeper? Those who live in Houston and the surrounding area may contact us at B&J Bookkeeping & Taxes for more information. We will help you see how much time and money we can save your business all year round.
