What This Means for You, Business Owner: Year‑end doesn’t pause just because the holidays arrive — but your bookkeeper likely will. What you do before Christmas directly impacts how smooth (or chaotic) January will be, so don’t wait until the last minute.
As we head into the holidays, there’s an important reality most business owners don’t think about:
Your bookkeeping firm is likely taking time off too.
That’s not a problem — it’s normal and healthy. But it does mean December has a natural cutoff, whether you realize it or not.
This post is part of our 3‑month December–February series designed to help business owners understand their role in year‑end preparation — and this is the reminder post that brings it all together.
Before Christmas arrives, your bookkeeper typically needs:
- Answers to outstanding questions
- Documentation for uncategorized or flagged transactions
- Confirmation on open invoices, unpaid bills, or deposits
- Any missing bank, credit card, or loan statements
- Decisions on employee bonuses or additional payroll items
Waiting until the last week of December — or assuming January is “close enough” — often doesn’t work.
By January:
- Deadlines are already in motion
- W‑2 and 1099 prep is underway
- Adjustments are harder (or impossible) to make
- CPAs are working with what they have — not what you meant to provide
January is often too late to fix what should have been addressed in December.
This is especially true for staff bonuses.
If you want a bonus to count as a 2025 deduction, the paycheck must be paid in 2025. The paycheck date determines the tax year it applies to — not when you decided on it.
If you file on an accrual basis, this may work differently depending on timing and circumstances. That’s something to confirm with both your bookkeeper and your CPA before year‑end — not assume.
This isn’t about urgency for urgency’s sake. It’s about respecting the process — and the people supporting your business.
Key takeaway:
Your responsiveness before the holidays determines how prepared your books are for January and tax season.
Your action item:
Before Christmas, check in with your bookkeeper. Ask what’s still outstanding from you, respond to pending questions, and provide missing documents while there’s still time to act on them.
If you haven’t already, the Year‑End Financial Checklist can help you quickly see what your bookkeeper may still be waiting on.
No bookkeeper yet? One of the biggest advantages of professional bookkeeping is knowing what needs attention — and when. This series is designed to help you understand that rhythm so nothing critical gets missed.
