'Tis the Season for Accounting: 10 Jolly Tips for the Year-End Jingle

It’s that magical time of the year for many accounting and finance professionals. While everyone else is thinking about hot cocoa, bright lights, and holiday parties, most of us are wondering about hot deadlines, bright budgets, and flurries of holiday receipts.

Though we have been there before, often balancing books better than Santa balances his sleigh, we know there's room for improvement and efficiency. Let’s unwrap these 10 jolly tips to jingle all the way to a successful year-end.

Countdown to Compliance

As the New Year's Eve fireworks fade, the real show begins for accountants. December is the grand stage for closing out the year and getting ready for critical January deadlines.

1. Income Taxes & Financial Audits

If you're doing accounting for an organization that operates on a calendar year basis, make time and have a systematic way for dealing with “clean-up” entries, accruals, and chasing last-minute transactions to make sure every transaction is in the system. It will greatly help for both the January 16th quarterly estimated tax payment of the prior year, as well as any financial audit the organization might be subject to.

2. Payroll-related Compliance

Map out in advance your payroll compliance reporting that is due during the first two months of the new year, so you can make sure you have all the data you need by December 31st for that. As time flies when you are having fun during the holiday season, you do not want to enter the new year with missing data for your W-2, 1099, and 401(k) census data reporting due by January 31st.

3. CPE Reporting

If you are a Certified Public Accountant (CPA) or an Enrolled Agent (EA), early December is the best time to make sure that you have taken enough Continuing Professional Education credits (CPEs) to maintain your license. Calculate how many hours you have so far, and block your calendar twice a week to catch up. This strategy ensures that even if a holiday party or two distracts you, your CPE requirements will not fall by the wayside.

Tech the Halls

The right technology can be the best gift for an accountant during the holiday season.

4. Writing Your New System(s) Wish List

With what feels like many moving pieces, having the right systems and technology to stay organized is paramount. Hopefully, you have systems that work for you and not against you. If not, then the end of the year is a perfect time to reflect on these points as you’re deep in the trenches, using your systems extensively. Start documenting:

• Features that you must have

• Unnecessary workarounds that should go

• Processes people complain about the most

• Transactions and/or reconciliations that should be done differently

5. Backing Up Your Data

Busy season is definitely not the time to have data issues. Make sure you have all your data, for all the months saved and backed up, even if you may still have a few more changes to be done after year-end. You should also know how to recover it should you need it.

6. Making the Most Out of Your Payroll Platform

After the ball drops on New Year’s Eve, it's a fresh start for payroll for you and the client base you manage. Ensure your system can handle new 401(k) contributions, benefits elections, 1099 thresholds, and other changes. For example, the 401(k) contribution limit will go from $22,500 in 2023 to $23,000 in 2024. These types of changes should not have to be manually changed, but done by the system.

Jingle Bell Reminders

Leverage year's lessons to help you improve your reminders, checklists, and timelines.

7. Prepping Checklists and Schedules

While it is tempting to use the same checklists and schedules you use every year, here are the few ways to upgrade them this year:

• Check recent accounting regulations and tax laws to make sure you are including the right information. 

• Make sure your account reconciliations and roll forward schedules are audit-ready with the correct beginning and ending balances.

• Include an instruction sheet or section with each schedule, because it is easy to forget processes and procedures we only do once a year. Plus, it helps new staff get up to speed faster.

8. Chasing ‘Deer’ Receipts

Schedule email reminders in advance, and don’t hesitate to use creative subject lines like “I can’t save you money you didn't spend” or “Don’t get on the naughty list.” During the holidays, reporting transactions and submitting receipts are not top of mind. So, it is easy for stakeholders to get distracted in the midst of holidays festivities, countless holidays deals and wishes flooding email inboxes. The more proactive you are early on, the better off you will be.

Tidings of Wellness

During this busy year-end with all its deadlines and accounting tasks, let’s not forget to take care of ourselves.

9. Mindfulness Wonderland

It is important to make time to unplug and recharge, to prevent burnout during the busy season. Therefore, ensure you have a team of elves or strategies to help you balance work and festivities effectively. Take a moment to ask yourself:

• Do I have the right support? 

• What's my 'Fun Plan' this season? 

• When the workload gets too heavy, how will I lighten it? 

As Jim Rohn famously quoted: “Take care of your body. It's the only place you have to live.”

10. Cheerful Collaborations

With labor shortages and staffing challenges, planning for fun is as important as planning for work. The holidays are always a great time to celebrate your team’s achievements in creative ways.

Internally, make sure your calendars are up to date with vacation and availability well in advance, so there are no surprises. Externally, keep clients in the loop. Let them know your availability and support during this season.

Make Your Year-End Easy

With these jolly tips, accounting during this season can be far less daunting than a blizzard. With proper planning and organization, you should enjoy the holiday festivities, without missing a beat work-wise. So, may your hot deadlines be met, your bright budgets be ready, and your holiday receipts submitted on time. Happy Holidays and cheers to a successful year-end close!

If you're looking for more support for your clients, consider partnering with Justworks. Their Justworks PEO and Justworks Payroll solutions can be a great fit for small business clients looking to automate payroll, tap into HR tools, and access employee benefits. Learn more about partnering with Justworks today.