This bookkeeping FAQs guide addresses the most frequently asked questions we receive during this time of year. It aims to help you stay organised and avoid any surprises.
As the year comes to an end, business owners typically take the time to review their accounts and prepare for important deadlines. This is also a time when queries tend to rise. Some questions involve bank holidays and deadlines, while others focus on record keeping, payments, or general year-end tasks.
Do bank holidays affect HMRC deadlines?
In most cases, no. HMRC deadlines stay the same even if they fall on a bank holiday or weekend. If a deadline falls on a non-working day, the return or payment is generally treated as received on time if it arrives by the next working day.
It is advisable to submit and pay early. Bank processing times can vary during the holiday season, and slow transfers may cause issues.
If Rosemary Bookkeeping handles your deadlines, we ensure everything is filed on time to avoid last-minute stress.
Should I adjust my cash flow plan for the holiday period?
Yes. December and early January often lead to changes in spending and slower invoice payments. Many businesses experience delays because clients may be closed or have reduced hours.
A few checks can help you stay on track:
- Review expected income and chase outstanding invoices early.
- Check planned costs, including staff payments, stock and suppliers.
- Allow for bank holidays, as they affect when payments leave or reach accounts.
Effective forecasting minimises the risk of shortages. If you need assistance with a cash flow review, your local Rosemary Bookkeeper can help.
Do I need to record festive spending differently?
Business costs remain the same, but it is essential to record them clearly. Festive expenses typically include client gifts, staff meals, or decorations. These need to be accurately categorised so you can claim the correct tax relief.
Examples include:
- Staff gifts are covered by the trivial benefits rules.
- Client gifts that meet HMRC criteria.
- Seasonal stock and supplies.
If you are uncertain about which costs are eligible, keep all receipts and consult your bookkeeper before filing your return.
Is there anything special I should check before year-end?
Several tasks help keep your records in good order:
- Confirm your bank reconciliation is complete.
- Review unpaid invoices and send reminders.
- Record all expenses, including small items that are easy to forget.
- Check payroll records and confirm all details are correct.
- Ensure that your software is up to date with the latest transactions.
Keeping your accounts organised simplifies the reporting process for the next stage.
Should I send invoices early in December?
It is a practical decision. Many clients have fewer payments during the holiday period. Sending invoices early increases the likelihood of receiving payment before year-end and minimises the risk of aged debt carrying into January.
Clearly stating payment terms is essential. If your terms are not included in your invoice template, add them before sending your next batch.
How can I prepare for the Self Assessment in January?
Gather the following as early as possible:
- Proof of income
- Expense receipts
- Bank statements
- Mileage logs
- Pension contributions
- Any income from property or other sources
The sooner you prepare, the easier it is to avoid errors or missing information. Rosemary Bookkeeping can assist you with record checks or tidying up your accounts before submission.
Should I worry about processing delays in late December?
It’s important to plan around holiday periods. Banks, suppliers, and clients may operate on shorter hours or experience slower processing times. Anything sent close to a holiday may take longer than anticipated.
Try to:
- Submit returns ahead of time
- Schedule payments early
- Keep proof of any submissions or transfers
Effective planning helps to reduce stress during slow periods.
This time of year adds pressure for many business owners. Maintaining clear records, submitting early, and planning steady cash flow can make a significant difference.
If you would like help preparing your records, checking your deadlines, organising your finances for the year ahead, or need any more bookkeeping FAQs answered, your local Rosemary Bookkeeper is here to support you.
