By Caitlin Lundon | Caitlin's Counting | Ottawa, Ontario
The holiday season can give your business a longer shopping list than your family.
Between extra inventory, payroll, marketing, staff celebrations, and all those little expenses that seem to pop up out of nowhere, things can add up quickly.
And here's something I always remind business owners: Just because sales are going well doesn't necessarily mean you have plenty of cash available.
It's easy to focus on what's coming into your business without always keeping track of what's going out.
The good news? A little planning now can make the holiday season much easier on your finances.
Here are six things I'd recommend keeping an eye on as we head toward year-end.
1. Know What's Coming In (and Going Out)
Before the holiday rush begins, take a few minutes to review your cash flow.
How much money is actually available in your business accounts? What payments are you expecting? And what expenses are coming up over the next few weeks?
Remember, revenue and cash flow aren't the same thing.
You might have a fantastic sales month, but if customers haven't paid their invoices yet, that money isn't available to cover your expenses.
A few things worth reviewing:
Expected customer payments
Upcoming payroll and operating expenses
Inventory or supply purchases
GST/HST and other tax obligations
Any larger year-end expenses
Even a simple cash flow forecast can help you spot potential shortfalls before they become a problem.
My tip: Look ahead at least 30–60 days, especially if your business experiences seasonal changes in sales or expenses.
2. Plan for Those Extra Holiday Expenses
The holidays have a funny way of making everything feel like a good idea.
Extra inventory? Of course!
A holiday marketing campaign? Sounds great!
Staff appreciation gifts? Absolutely!
And while these can all be worthwhile investments, they still need to fit into your budget.
Before committing to additional spending, ask yourself:
Will this expense actually help my business, and can I comfortably afford it right now?
For retail and product-based businesses, inventory planning is especially important.
You don't want all your available cash tied up in products that might not sell until January (or later).
And for service-based businesses, think about upcoming expenses like software renewals, holiday bonuses, and any additional staffing needs.
A little budgeting now can help you avoid unpleasant surprises later.
3. Don't Forget About Outstanding Invoices
Here's one of my favourite reminders: A sale isn't the same as money in the bank.
If you have customers with outstanding invoices, now is a great time to follow up.
Take a look at your Accounts Receivable report and check which invoices are overdue, which customers may need a friendly reminder, and whether any payments haven't been recorded correctly.
You don't need to be pushy. Sometimes a quick, polite email is all it takes.
And if your customers tend to close their offices over the holidays, consider sending reminders a little earlier than usual.
Getting those payments in before the holiday break can make a big difference to your cash flow.
My tip: Make reviewing outstanding invoices part of your regular monthly bookkeeping routine, not just something you do when cash gets tight.
4. Set Money Aside for Taxes
I know, I know. Taxes aren't exactly the most festive topic. But they're definitely something we don't want to forget about.
If your business collects GST/HST, remember that the money collected isn't all yours to spend.
You'll need to account for your net GST/HST obligations and any upcoming payments.
Depending on your business, you may also need to plan for:
Payroll source deductions
Corporate income tax instalments
GST/HST remittances
Other applicable business tax obligations
In Canada, filing and payment deadlines depend on your business structure, reporting periods, and CRA requirements.
That's why it's important to know which deadlines apply specifically to your business rather than assuming everyone follows the same schedule.
My recommendation? Don't wait until a payment is due to figure out where the money is coming from.
Set funds aside regularly and keep your bookkeeping up to date so you have a clearer picture of what you may owe.
For official information about GST/HST reporting and payment obligations, you can also visit the Canada Revenue Agency's GST/HST resources.
5. Review Your Numbers Before Making Big Purchases
Thinking about buying new equipment, increasing your advertising budget, or bringing on additional staff before year-end?
Before making those decisions, take a look at your financial reports.
Your Profit and Loss Statement can help you understand whether your business is profitable, while your Balance Sheet and cash flow information give you a better picture of your overall financial position.
These reports can help answer questions like:
Can I comfortably afford this purchase?
Are my expenses increasing faster than my revenue?
Will I have enough cash to cover payroll next month?
Am I setting myself up for a strong start to 2027?
And one more thing: Don't buy something just because you think it'll give you a tax deduction.
Tax treatment depends on the type of purchase and applicable CRA rules. A deduction doesn't make an unnecessary expense a good business decision.
Make sure the purchase makes financial sense first.
You don't have to become an accounting expert, but understanding your numbers can help you make much more confident decisions.
That's one of the things I love most about bookkeeping. It's not just about keeping records tidy. It's about helping business owners understand what's actually happening behind the scenes.
6. Get Your Bookkeeping Caught Up Before Year-End
If your bookkeeping has been sitting on the "I'll get to it later" list, you're certainly not alone.
Between looking after customers, managing staff, and handling everything else that comes with running a business, it's easy for receipts and transactions to pile up.
But the longer things sit, the harder they can be to sort out.
Before the end of the year, try to:
Reconcile your bank and credit card accounts
Upload missing receipts and invoices
Review uncategorized transactions
Check outstanding customer and vendor balances
Make sure your financial reports are accurate and up to date
And please don't feel like you need to have everything perfectly organized before asking for help.
That's rather the point of having a bookkeeper.
Whether you need help catching up or you're looking for consistent monthly support, having someone look after your books can give you more time to focus on running your business.
You can learn more about how I help Canadian business owners through Caitlin's Counting.
A Little Planning Now Can Make January Much Easier
The holiday season should be an exciting time for your business, not one spent worrying about whether you have enough money to cover your expenses.
And you don't need a complicated financial strategy to get started.
Sometimes, it's as simple as knowing what's coming in, planning for what's going out, and making sure your books are telling you the full story.
A few good habits now can make a big difference when January rolls around.
And if you need a hand, I'm here to help.
Need Help Getting Your Books Ready for Year-End?
Hi, I'm Caitlin, the person behind Caitlin's Counting, an Ottawa-based bookkeeping business helping Canadian business owners stay organized, understand their numbers, and feel more confident about their finances.
Whether you need ongoing monthly bookkeeping, QuickBooks support, or help getting caught up before year-end, I'd be happy to learn more about your business.
Let's chat!
Email info@caitlinscounting.ca to arrange a connection call, or visit www.caitlinscounting.ca to learn more about my bookkeeping services.
Here's to a successful holiday season and a little less bookkeeping stress along the way!
