12 Days Of Financial Blissmas – Prompts To Shape Up Business Finances This Holiday Season

By Harriet FormbyFinance Tips, New on the blog

🎄 12 Days Of Financial Blissmas - Prompts To Shape Up Business Finances This Holiday Season 🎄

Get ready to sleigh your business finances!  The 12 Days of Financial Blissmas series is back for 2023.

Join us for daily prompts that’ll whip your business numbers into shape before the holiday break. So you can relax into 2024 with more joyful financials.

Day 1: Supercharge Your December Funds: Take Action to ensure payments will arrive on time!

We’re not going to leave it to chance, that those invoices just magically get paid!

If you’re expecting payments in December, take action now to ensure they arrive on time so you can relax knowing they money is hitting your account:

👉 Understand Your Client’s Holiday Schedule: Before the festivities really begins, check when your clients plan to close and reopen and find out when they’re set to make their last payment run of the year.

👉 Invoice Promptly: if you’re expecting to get paid in December whizz those invoices off to the right person sooner rather than later.

👉 Confirm Receipt and Payment Dates: After sending the invoice, confirm its receipt and inquire about the expected payment date if appropriate. This ensures your invoice isn’t overlooked and helps you plan accordingly.

👉 Avoid Chasing Late Payments: To enjoy a stress-free holiday, address payment issues early. Follow up before your break if necessary. It ensures your finances are in order, allowing you to relax during your holiday. 🥂

Bonus points if you already get paid upfront or have your clients on direct debit but I know it isn’t always possible, especially if you’re working with larger organisations.

Day 2: Enjoy Christmas On Your Company! Take full advantage of gifting and partying rules!

Did you know there are some tax savvy ways to gift yourself and have a party at Christmas via your Limited Company? 🎉

You could even swing it that you can cover some of your Christmas present buying, the big food shop and/or go out for a lovely festive meal on your company and claim it as a legit business expense!  Read on for how…

🎁 GIFTS 🎁

For you as a Director

As a company Director (of a company will less than 5 shareholders) you can each gift yourself up to £300 (inclusive of VAT) worth of ‘non-cash’ benefits annually. This includes things like hampers, wine, theatre tickets or shopping vouchers. So it can be worth doing even if you simply gift yourself some supermarket or Amazon vouchers and do a bit of Christmas shopping (via those vouchers) tax-free!

For your staff

If you employee staff you can also buy them the same kind of gifts, however you can only spend up to £50 (including VAT). Again they must not be cash based gifts and cannot be given as part of a contractual obligation or expectation.

For your clients

The rules on Christmas Gifts to client are not so great! They are treated the same as client entertainment (i.e. cannot be set against tax). With a few exceptions; if the gift very clearly carries your advertising on it or it represents trade samples.

🎉 CHRISTMAS PARTIES 🎉

For your team

You can spend up to £150 (inc VAT) per person for your team of employees on an annual celebration. This includes the cost of food, drinks, entertainment and travel. (The £150 is not a cap it is an all or nothing limit so be mindful of that).

For you

You might be thinking well it’s just me as a sole Director! Don’t worry your business can still pay for you to have a Christmas party of sorts. You can spend the same – £150 (including VAT) on a nice meal or activity.
And you can even bring spouse or family member along who doesn’t work for the company and spend a further £150 (including VAT) on them as well! So you basically have £300 to fund a little celebration tax free.

Lots of business owners are often not fully aware of the opportunity here, so I hope it inspired you to make the most of the allowances. 

❌ Please note: unfortunately these rules only apply for Directors of UK Limited Companies (not Soletraders or anyone who is only a shareholder) ❌

Day 3: Record Keeping For The Win! Just before you go off spending...

In the prompt from Day 2 we covered how to maximise opportunities for Limited Co Directors at Christmas (and beyond!). But just before you head off for that meal or buy those vouchers on the company – here are a few pointers to ensure you get the cost in your accounts correctly.

Otherwise by the time your accountant prepares your accounts and you’ve long forgotten about it – you might miss out on the tax relief! 😑

🎉 CHRISTMAS PARTY/MEAL🎉

✅ To recap your company can pay £150 (inc. VAT) per head for Christmas parties (and any other functions through the year that have a combined £150 limit).

❌ It is strict limit – if you go over £150 per head, the ENTIRE amount becomes liable for tax/NI

✅ Ensure you keep hold of receipts and record it as a staff (rather than client) entertainment cost.

✅ It’s good practice to also note down that it was for the company Christmas party – attended by X (number of) people.

✅ If you are VAT registered then the VAT on the Christmas party can be reclaimed if Directors AND employees attend the party.

❌ But if it was only attended by directors/their partners then you cannot reclaim the VAT.

🎁 GIFTS 🎁

✅ You can gift employees ( a trivial benefit) worth up to £50 (inc. VAT) via your company for occasions such as Christmas. As long as it is not cash and is not given as part of a contractual obligation.

❌ If the gift exceeds £50 then it is ALL subject to tax/NI

Hence why it’s only tax efficient if you keep within the limit! For directors the same allowance is £300 (inc. VAT) annually and same rules apply.

✅ You can also reclaim the VAT for these gifts on our VAT return.

✅ As with other business transaction you should retain the invoice/receipt along with a description of what it was for in your accounting records. 📝

Finally, it’s a savvy idea whenever your handling paper receipts – to write on it what the occasion was and snap a photo of it to retain for your records before it gets crumped or soggy! 🌧️

Speak with your accountant (or me) to clarify anything you are still unsure of with this.

Day 4: Help Out Future You:! Make A Plan For Your Personal Tax Return

Whether you file your tax return yourself or your accountant prepares it for you, you’ll be aware the tax return deadline is looming… 🫣 But with all the Christmas stuff it’s not exactly top of our to do list’s! After all it is a dull task and results in having to hand over your hard earned cash to HMRC. 

Right now you probably fall into 1 of 3 camps:

1. ‘It’s all sorted and I know exactly what I need to pay in tax!’ 

2. ‘I know what to do, I just haven’t actually done it yet!’ 

3. ‘I am filled with dread at the prospect and don’t know where to begin!’ 

If you are in camp ‘1’ congratulations you can sit this one out!  But if you are ‘2’ or ‘3’.. let’s help ‘future you’! In late January ‘future you’ will be wishing you’d gathered up your expenses  and finance bits together already. Frozen in shock at the total tax due, ‘future you’ will be wishing they’d started this earlier. If only you’d started this sooner and had a bit longer to process and plan for how much you had to pay in tax.

With time ticking away, ‘future you’ will be swearing at the HMRC portal as you are locked out for forgetting your password, joining a long queue to ask the helpline to help you get in! So this side of 2023, I invite you to give some support to ‘future you’ by following these steps:

A. If you have an accountant preparing your return:

➡️ Check what they need from you and plan when you will gather the information.

B. If you do your tax return yourself:

➡️ Check your login details for the HMRC portal work now. That way you have plenty of time to get back on track with passwords if you’ have no idea what it is.

➡️ Try to get at least an estimate of how much tax you are likely to owe sooner rather than later. So you have as much time as possible to gather together the funds or have peace of mind that what you put aside should be ok. (Or sort a payment plan)

Day 5: Year End Revenue Boost - Share The Magic In Your Existing Creations

You don’t need to create something new to shine in December!  In fact, let’s be honest, your time is precious and probably fully booked up with finishing off your work, festive obligations and Christmas to do lists 

But guess what? Within your existing treasure trove of offerings, there’s undoubtedly some sparkling gems waiting to be rediscovered. Remember that popular product or service you haven’t talked about in a while? 

Here’s a secret tip: you can make a big impact with minimal effort right now. Think digital downloads, or a consultation scheduled for the new year.

Why not bundle a few elements of your offering into an irresistible festive package?  This not only boosts your bank balance but also delivers exceptional value to your audience. It’s a Win-win! 

So, what’s your hidden gem? What will you proudly shout about today? 📣

Day 6: Money Saver! Trim The Costs That No Longer Serve You

As we round off another year, I invite you to embrace the opportunity to take a closer look at your regular expenses.

Many of our business and personal spending habits revolve around subscription models. These are the automatic payments that flow out of our PayPal, bank accounts, or credit cards for services, apps,  product subscriptions and more .

Often they’ll have been set up with a single click and possibly  forget about. This might leave you unaware that money continues to leave your accounts each month, regardless of whether you’re actually utilising or benefiting from them 

Today, I invite you to allocate some time to reviewing your recent bank statements or transactions histories. By doing so, you can identify any recurring expenses that you might want to cancel or adjust 

You’ll be amazed at how much you can save by taking this step.  And the money that you could save might even contribute to your Christmas gift fund. Along with setting you up with more aligned and intentional outgoings as we enter 2024.

Day 7: Reflecting on 2023 - What Will You Do 'More Of' And 'Less Of' in 2024?

Today I invite you to pause and reflect on everything you’ve been involved with working on  these past 12 months. It’s an opportunity to step back and consider what went well (and not so well !) and plan any changes for next year!  So here are some prompts to help you evaluate what you may wish to do  more of (and less of) going into 2023 

First off: list out all of your income steams/ work/project focuses in 2023 

What were the:

💡 Services you offered

💡 Products you sold

💡 Clients/companies/orgs you served

💡 Projects/outcomes you delivered

💡 Other focuses – perhaps you recorded a podcast or attended events?

Consider the following questions in relation to each one:

– Did it bring you joy? 

– Did it make you ‘decent’ money? 

– Did it align with the direction you want to go in? 

– Was the payback seemingly fair for the effort you put in? 

– Did it allow you to express your core values?

You could use a grid approach to mark off the questions that ring true ✔️

Then you can visualise clearly what to consider changing for next year. To help you move closer to your most aligned combination of profit, success and impact. 

Activities don’t have to tick ALL the boxes at all times!

But if they don’t tick ANY then you likely should not be doing them at all if you can help it

Let me know in the comments if you are happy to share!

What will you do MORE of in 2024? ✅

What will you do LESS of in 2024? ❌

What will you approach differently in 2024? 💭

Day 8: Lighten The Load: Create Some Breathing Space In Your Calendar

Today’s prompt is an invitation to take something out of your schedule to create more space for what truly matters to you. So find something in your business, a task or commitment that’s weighing down your December to do list 

How could you re-imagine it to free up some breathing space?  Perhaps you could find a way to:

👉 simplify it

👉 re-schedule it

👉 get help with it

👉or eliminate it all together

Day 9: Positive & Proactive Price Changes - Communicate Rises Clearly & Confidently

Thinking about adjusting your prices?  You’re not alone. If you’re feeling uncertain, my Pricing Masterclass might offer some clarity (DM me for the YouTube link).

But making the decision to raise your prices is just the beginning of the journey.  Equally crucial, yet often overlooked, is effectively communicating these changes to your valued customers and the broader market. 

Here are some helpful prompts to enable you to confidently and clearly convey your price adjustments:

👉 Provide Advanced Notice: Help your customers absorb the information and plan their finances by offering sufficient notice before the changes kick in.

👉 Take a Positive Approach: No need for apologies! Your clients likely understand the necessity of adjustments due to rising costs. Be transparent and assertive in your communication: ‘I’m sharing information about pricing changes…’

👉 Context is Key: If relevant, share when prices last saw a change. Highlight the advancements you’ve made in your business since then, whether it’s investing in training, software enhancements, or sustainable, high-quality suppliers.

👉 Early Bird Incentives: Consider providing the opportunity to benefit from deals before the new prices take effect, if it aligns with your strategy and gives you a cash flow boost.

👉 Open Dialogue: Determine if you’re open to discussing/varying price changes with clients. Preparation and practice can help you navigate these conversations smoothly.

You might even want to create a list of frequently asked questions (FAQs) about the price increase.

With these insights, you’ll hopefully feel well-prepared to approach price adjustments with confidence and a positive outlook as you step into a prosperous New Year! 

Day 10: Dream First, Plan Later - Trust In The Power Of Your Imagination

Before setting your 2024 financial goals, pause to ignite your imagination 🔥. Forget past constraints and the need for ‘realistic’ or ‘logical’ goals for a moment.

Instead give yourself room to indulge in your dreams, envision your desires vividly, and clarify what you truly aspire to create. This imaginative phase is crucial; it’s the foundation for crafting financial goals that resonate deeply, feel energising, and bring genuine excitement and growth.

Trust that the financial details that define the ‘what’ and ‘how’ of brining these to live in stages as goals, will more naturally follow once your vision is clear and aligned with your aspirations.

Phase one is to back away from the spreadsheet and take yourself in a environment where you’re imagination can run wild 🐅

Day 11: Break Client Groundhog Day, Re-invent Repetitive Client Interactions

Do you ever get tired of answering the same questions over and over?  Today’s prompt is all about finding small, low-effort ways to freshen up your customer/client interactions so you have more capacity for the more impactful, high value stuff. 

Here’s some little tweaks to try, to give clients helpful self-service resources so your time together feels more meaningful 

Some starter ideas:

✨ Create a simple FAQ doc about your service/products

✨ Record a quick intro video explaining core offering

✨ Template emails to answer common queries

✨ Fill-out intake forms to cover basic client info upfront

✨ Batch record micro-trainings on each service offering

✨ Have clients submit questions ahead of sessions

✨ Hold drop-in office hours for quick questions

✨ Build a tip sheet library on frequently-asked topics

✨ Auto-response messages providing self-serve options

✨ Online scheduling for clients to book themselves

✨ Offer a standard pricing/service menu

✨ Group VIP days with mini-sessions

✨ A private online community forum

✨ Send regular newsletters preempting FAQs

The key is figuring out where clients most need supplemental resources so your time can focus on deeper dialogue and doing the impactful work that keeps the funds rolling in.

Day 12: Financial Self Care - Prioritising Your Personal Finances

Taking care of your personal finances is not just a matter of budgeting and saving—it’s also a form of self-care. As a business owner, we can sometimes focus on sorting our business finances without taking much notice of our personal finances .

So today, I invite you to reflect on the steps you’ve taken to prioritise your personal finances and to identify any areas where you could deepen and enrich your financial self-care practices.

Some ideas of areas you may wish to explore:

✨Setting boundaries between personal and business spending

✨Reviewing your regular outgoings and direct debits

✨Establishing an emergency fund

✨Setting savings goals

✨ Creating a separate pot of money for fun and treats

✨Craft a financial vision board to depict your goals and aspirations

✨Discover an aligned financial podcast that  feels uplifting, comforting or educational

✨ Rather than throw away and buy new how you can repurpose and upcycle

✨Identify a charity or cause you would like to support in 2024

These are a few ideas that can help contributed to your overall sense of money wellbeing, security and balance ⚖️

Feel free to share your journey and any tips or strategies that have worked for you in the comments below, and let’s inspire each other to improve our financial well-being in December and beyond! 💫

Hi, I’m Harriet Formby, your trusted Fractional CFO, Chartered Accountant and Business Growth Specialist.

I am the founder of Below The Line Finance and my mission is to financially empowering creative entrepreneurs to build aligned businesses  – with profit, purpose and healthy cashflows!  With my collaborative and supportive approach, I am dedicated to guiding you to greater confidence and success with your business finances. What could you accomplish with your very own Mini CFO?

Let’s stay in touch:

Together we can say goodbye to fear and confusion, build solid finance foundations and step into a supportive environment where you can turn your dreams into a reality through bespoke finance strategy.

Harriet Formby MA ACA

Small Business CFO, Below The Line Finance