How to Plan for the End of the Year

Prepare early to avoid much stress later on.

I love Christmas, but I don’t love the end of the year. That’s because once December hits, I’m fully aware that my deadlines are subject to change as clients go away for the holidays, push off work until January or make some other request that means I will need to react with little notice. I’ll still have my time to celebrate the season with my family and friends, but I am fully aware that planning ahead — like completing my gift shopping early — can help limit my stress.

I’ve been working for myself over the past nine years and have learned a thing or two about the waning weeks of the year and what to expect. Read on if you like because I’ll share with you what I’ve learned:

Talk with your clients — Preferably before November comes to an end and most certainly by the first week of December, contact your clients to find out what changes to deadlines, if any, can be expected. If you’re planning to take time off for the holidays, you should broadcast that fact as soon as possible. For example, if your last day of work for the year is December 23 and you won’t be returning until January 2, then get the word out NOW. Everyone deserves a break — trust me, the week between Christmas and New Year’s Day is typically a very slow one. So take some time off.

Discuss billing schedules — As part of communicating with your clients, you’ll want to make sure that your billing schedule lines up. Don’t be caught blindsided to find out later that the entire accounting department went on holiday as your mortgage payment comes due. For long term clients, you should be able to secure an advance on your work, especially if you’ll be supplying articles, writing press releases or copywriting throughout the holiday season.

Consider your rates — Everyone else is reviewing what they charge you (health insurance, car insurance, subscriptions, etc.) and you should do the same. It is still customary to pass off increases at the beginning of the year. If you haven’t raised your rates in some time, then plan to do so now. For example, if you’ve been charging $50 for those 500 word articles over the past two years, your client should be receptive to an increase. Charging $55 is a 10 percent jump, but don’t let percentages scare you. If your client is immensely happy with your work, then she should agree to your increase. If she is crying the blues, then ask that you both revisit the issue in April. Wait no longer than that as you’ll soon forget and an entire year will have passed by without the raise. For new clients, bring them in at your newer and higher rates.

Review your taxes — Self-employed people, whether they have a formal business such as an LLC or simply work on the side, can look forward to lots of deductions come tax time. Besides the interest on my mortgage, our family’s health and dental insurance, and related medical costs can be deducted. Office expenses, a new piece of equipment and many other things can also be deducted. If you were looking to expense something early next year, consider buying what you want now to raise your deductions. Maybe you wanted a new computer anyhow — the sales this time of the year are phenomenal.

Update your records — This is the first year that I actually paid someone to do some of my work. That means I’ll be issuing him a 1099 form in January. I keep a running record of the articles he has written and what I paid him on a spreadsheet. With each payment that information is quickly updated, so I know that there will be no surprises come tax time. I just need to remember to get the form to him by the end of January.

Order your tax software — I still do my own taxes, but must admit that I would be lost without the help of Turbo Tax. In early November, I pay for my yearly update and later that month I can download my federal update. If you use a bookkeeper, an accountant or some other tax preparing professional, why not schedule your appointment now before he is swamped? That will give you the motivation you need to gather all of your paperwork. With the help of Turbo Tax, my taxes are usually done and filed by mid-February.

Plan your quarterly taxes — Speaking of taxes, your fourth quarter taxes are not due until January 15. But don’t be fooled: set aside enough money now to avoid a financial catastrophe after the first of the year. You can’t afford to let this slip by as both the IRS and your state may not be so forgiving.

Get organized — The week between the holidays is when i go on full housekeeping mode. That doesn’t mean I stop writing, but it does mean that all of the loose ends I left untied will be handled. Fortunately, I’m fairly good at “clean as you go” and won’t have much to deal with. Still, the calendar changes and I will be doing the following: organizing my files, shredding very old and unneeded documents, setting up new files for the new year, putting up a new calendar, backup files, update my contacts list and review my online presence. With the latter, I spend a portion of my time at year end to update my LinkedIn profile to reflect my current projects. I’ll also update some of my websites, decide which ones I want to keep for the coming year and ensure that my domains and web hosting accounts are always up to date.

Have I forgotten something? No doubt that I have. Everything I mentioned here is from the top of my increasingly balding head. No matter, I keep notes in safe places and refer to these regularly. I’ll be on “Christmas mode” through December 26 this year, but when I return to my work on Dec. 27, I’ll swing into my new year mode and complete my year-end transition.

Photo: Hilde Vanstraelen

Reflections on a Year Soon to End

Mostly everyone I have talked to over the past few days has made a similar remark: 2009 seems to have gone by fast. Starting with the seating of a new president in January through the bankruptcies of GM and Chrysler months later to the halting of much of the financial bloodletting by the fall months, a lot took place this year.

But it seemed to move at lightning speed, at least that is what some people have told me.

2010 is upon us and I have just one question to ask: how will you pronounce the new year? I’ve been mulling this for a few years now and am inclined to say “twenty-ten” instead of “two thousand and ten.” Twenty ten is short, to the point, and returns us to the pronunciation style we favored in the 20th century.

Still, I am hearing most newscasters and everyday folks pronounce the latter, therefore I am presuming that the lengthier, more cumbersome five syllable utterance will beat out the three syllable vocalization, at least initially.

I trust that your holiday season has been a good one, though it certainly has been trying one for several people. Just yesterday I talked with a friend who lost his job in May, who commented how much different the job search was for him this time around. As an engineer, he was used to losing his job from time to time only to regain a new one almost immediately, but nothing quite matched his experience in 2009.

Instead of receiving replies from companies about his job inquiries, he heard absolutely nothing. This went on for months until, finally, in November one query returned a contract opportunity which may last him until June.

I say “may last him” as we both know that contract gigs can be canceled at any time. He believes the job will be around for most of that time, but he is not relying on that happening. Instead, he will be launching his new business in the weeks ahead and joining the growing numbers of people who were downsized at the height of their careers and have decided to make a go of it on their own.

Anyway, what choice do most people have? It is not as if there are many jobs out there. At least good paying ones at that.

I am not about to harp on 2009 as the past is just that: gone. Like my friend who is launching his new business, I’ve decided to keep my eyes focused on what lies ahead. We have both entrusted our businesses into the capable hands of Almighty God, knowing that His guidance is more than sufficient for 2010 and beyond.

This will be my last post on Matt’s Musings for 2009, with a forward looking tips article to be posted here on New Year’s Day. Many thanks to each of my readers as your loyalty has helped sustain me through much of the past year.

Photo Credit:  Billy Alexander