For sole traders, the end of the calendar year can be a hectic time – faced with wrapping up the work for the previous year and preparing for the following year.
While you may not face the same reporting requirements as companies, there are still key financial and practical issues worth addressing before heading into 2026.
Cash Flow Pressures
December often brings mixed cash flow. Some clients shut down and delay payments, while others may settle invoices early. To manage the ups and downs, review your receivables before the break, follow up on overdue invoices, and set aside funds for January obligations such as GST or PAYG instalments.
Superannuation Contributions
Unlike employees, sole traders need to manage their own retirement savings. The end of the calendar year is a great reminder to check your super contributions. Even small, consistent payments can build long-term security, and December is a natural checkpoint to review progress.
Expense Management
It’s easy to blur business and personal costs during the festive season – especially when travel, gifts, or entertaining clients overlap with personal activities. Keeping clear, accurate records helps you avoid disallowed deductions and makes tax time far less stressful.
Record-Keeping and Organisation
Use the quieter period to tidy up paperwork. Reconcile bank accounts, update bookkeeping systems, and ensure receipts are stored properly. Good habits now mean less scrambling later.
Planning Ahead
Sole traders don’t usually get the luxury of a full office shutdown, but stepping back to review your pricing, workload, and business goals for 2026 is invaluable. A short pause to set intentions will make the new year feel more manageable.
Last But Not Least
The end of the calendar year isn’t just about finishing jobs – it’s about positioning yourself for a smoother start. By addressing cash flow, super, and record-keeping now, you’ll give yourself the best chance to begin 2026 with clarity and confidence.
Disclaimer
The information contained in this publication is for general information purposes only, professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.