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

Giving Thanks & Remaining Grateful

I thank God for my work. What I mean is that I do thank my Creator for the ability to get up every day, log on to my computer and type away. That isn’t something I’m willing to take for granted as I know too many people who struggle to find employment and I know of at least one person who physically cannot work, but would like to.

Winding Down

I’m not ready to put 2011 in the bank just yet, as there are five weeks remaining in what has been a topsy-turvy year. On the one hand, I’ve been working my tail off. On the other hand, new clients come and old clients go. Sometimes the new clients don’t stay around as long as I want either, but at least their sooner-than-expected exit can be attributed to an internal decision and not something I’ve done (or so I’ve been told). At least I’ve been able to replace what has been lost and that is a good thing too: I’d be in financially dire straits if I had no new clients to pick up the slack.

Years ago, I picked up the phrase “an attitude of gratitude,” which is something I try to keep as part of my Christian journey. Of course, you don’t have to be a Christian to be grateful, but then I would wonder who or what would be the object of your gratitude?

To that end, I am offering the following grateful musings on this eve of Thanksgiving 2011:

Steady clients — I’ve been writing steadily for one client since September 2007 and had been used by him on special projects prior to that. This client, who shall remain nameless, has had his own battles too. He could have called it quits long ago, but he chose to stick around…and stick with me. Besides being a loyal client, I enjoy the freedom to write and edit pretty much as I please. No stilted guidelines and no high expectations other than to deliver quality work that enhances his business. Another client has been around since August 2008, offering me immense writing and editorial latitude as well. Thank you, gentlemen.

Enjoyable gigs — Not every client is “permanent” nor are all gigs I take on for the long term. This year, I’ve had taken on several projects that lasted for just a few months, but still managed to deliver much satisfaction. In some cases I’ve delved into new territory or expanded my prime writing field (automotive) to cover other areas such as technical specifications. Although at times this has proven to be immensely challenging for me, the reward of accomplishing a task was evident. Ah….

New vistas — My writing continues to get noticed, as automakers and suppliers are contacting me about my work. I’ve been flown to attend meetings, enabling me to get a first glimpse at new products. I have even been given cars to drive for a week, making it easier for me to write up my reviews. Recently, I launched a niche site, FoorHood.com, enabling me to dig deeper and cover a specific manufacturer up close and personal. Getting to see new product, such as the a pair of Ford ST models before an auto show reveal is fun too. Thanks, Ford. And GM…Nissan…Hankook…and all the rest.

Milestones celebrated — This month I marked my 9th anniversary of freelancing. I started out managing web communities and gradually transitioned fully to freelance writing, preferring to write for others although Matt’s Musings and some other websites I own give me platforms to write for myself. Lord willing, I’ll be celebration my 10th anniversary next year, something I never expected to reach. Then again, if someone woos me away and offers me an opportunity I can’t (or shouldn’t) refuse, I just may chuck it all and work for someone else. Either way, I’m thankful.

Family Thanks

I’m sure that I could add more to this list, but these four points stand out above the rest. Of course, I’m thankful to my wife who has been patient through it all, including seeing work come and go, and wondering if there was something more secure out there for our family. Our two boys, too, have put up with a lot, but I know that they’re glad to see their Daddy more often than what some of their friends are able to do.