As the year draws to a close, many business owners find themselves trying to wrap up client work, manage staff leave, and plan for the new year - all while attempting to enjoy the festive season. December always feels short, and once schools break up, productivity often drops whether we intend it to or not.

Taking a couple of hours to put a few key things in order now can make January far less stressful, protect your cashflow, and give you the peace of mind to actually enjoy the break. Here are five practical steps worth ticking off before you lock up for Christmas.

1. Review your cashflow for the next 6–8 weeks

December and January are unusual months financially. Income can dip, expenses can rise, and payments often take longer than usual. A quick cashflow check helps avoid surprises.

Look at what is due in, what is due out, and whether any gaps need bridging. If you notice pressure points, it is far better to address them now; chase outstanding invoices, speak with suppliers about payment timings, and make sure enough is put aside for January’s tax and payroll commitments.

A half-hour review today can save you scrambling in the new year.

2. Chase overdue invoices before people disappear

Once schools close and staff begin taking annual leave, it becomes harder to get hold of people. If you have unpaid invoices over 30 days old, now is the best time to follow up.

Polite reminders work well at this time of year. Many businesses simply forget in the run-up to Christmas, so a quick message often results in payment before teams close down.

The earlier you chase, the more chance the funds land before the end of December.

3. Check your payroll, bonuses and holidaycalculations

December is a busy payroll month. Staff holidays ,festive hours, overtime and potential bonuses can all add complexity. Miscalculations often lead to rushed corrections in January, so it’s worth doing a final check ahead of time.

Confirm that:
• All holiday requests are processed
• Overtime or shift changes are logged correctly
• Bonuses (if applicable) are authorised and scheduled
• December payroll dates align with bank processing times

For businesses with tight margins or large teams, this review is essential.

4. Make sure your records, systems and backups are up to date

Before switching off for a week or two, make sure your bookkeeping, receipts, expenses and documents are uploaded and saved. Not only does this keep things tidy for the year-end process, it also protects you if systems fail or hardware is lost during the break.

If you’ve been meaning to tidy folders, reconcile a backlog, or update software, now is the time. A clean slate makes January planning far easier.

Cloud systems do a lot of heavy lifting, but someone still needs to check the numbers are correct. Remember, AI cannot take responsibility for errors, and HMRC will always look at the human behind the accounts.

And don’t forget that the 31st January self-assessment deadline arrives immediately after the festive break. Getting your information over to your tax team as early as possible will always be appreciated and makes the whole process much smoother.

5. Take stock of your year - and set three priorities for January

You don’t need a full strategic overhaul before Christmas, but choosing three clear priorities for the first month of 2026 gives you a strong head start.

Think about what made the biggest difference this year, and what slowed you down. You may want to focus on profitability, costing, staffing, marketing, or simply tightening internal processes. Whatever your goals, clarity before Christmas means you begin the new year confident and prepared.

January is much easier when you know what you are aiming for.

Final thoughts

December should feel like a natural pause - not a stressful sprint. With a bit of preparation, you can give yourself a genuine break over Christmas and come back in the new year ready to move forwards.

If you’d like support with your end-of-year planning, cashflow forecasting or January tax position, get in touch for a free, informal chat. We’re here to help you start 2026 with confidence.

‍