If you’re like most SME owners, the thought of year-end accounts probably makes you want to hide under your desk until January. But here’s the uncomfortable truth: leaving your bookkeeping until December is like trying to lose weight by crash dieting in the week before your holiday. It’s technically possible, but guaranteed to be painful and likely to go wrong.

October is your golden opportunity to get ahead of the game. With three months left until the end of the calendar year (and maybe your financial year), you’ve got enough runway to sort out any mess, spot potential issues, and actually make strategic decisions based on real data rather than guesswork.

We call it the ‘October advantage’

Why October? Simple. It’s far enough from the year-end that you can still influence your numbers, but close enough that patterns are clear. You can see which clients have been slow payers, which expenses have crept up without you noticing, and whether you’re on track to hit your targets (or need to pivot sharpish).

More importantly, October gives you breathing space. If you discover that you’ve been claiming mileage incorrectly all year, or that a major client payment has gone missing, you’ve got time to fix it without the pressure of looming deadlines.

Start with a financial healthcheck

Before diving into the nitty-gritty, take a helicopter view of your finances. Pull up your profit and loss statement for the year-to-date and ask yourself some honest questions: Are you actually making money, or just staying busy? Which products or services are your real money-makers? Where is cash leaking out of the business?

This isn’t about perfection, it’s about understanding the story your numbers are telling. If your revenue is up but your profit margins are down, that’s a red flag worth investigating now, not in three months’ time.

Tackle any overdue invoices

Let’s address the elephant in the room – overdue invoices. October is the perfect time to chase outstanding payments before everyone disappears for Christmas holidays.

Start with invoices over 60 days old and work your way forward. Send polite but firm reminders, make those awkward phone calls, and consider whether payment plans might help cash-strapped clients settle their accounts. Remember, an invoice isn’t revenue until it’s in your bank account.

Reconcile everything

Bank reconciliation might not be the most thrilling part of running a business, but it’s absolutely crucial. Set aside a morning to reconcile your bank statements, credit card accounts, and any payment platforms like PayPal or Stripe.

Look for duplicate payments, missing transactions, and anything mysterious. This process often uncovers money you’d forgotten about or subscriptions you no longer need. 

Let’s talk tax

October is also prime time for tax planning conversations with your accountant. If you’re having a particularly good year, you might want to consider bringing forward some planned expenses or investments. Conversely, if things have been tight, there might be legitimate deductions you’ve overlooked.

Don’t wait until March to have these conversations. Your accountant will appreciate the advance notice, and you’ll have more options available when you’re not working against the clock.

If you’re VAT registered, October is an excellent time to ensure your returns are up-to-date and accurate. Check that you’re claiming all eligible tax relief and that your sales figures match your actual receipts.

For corporation tax planning, review your annual expenditure and consider whether any planned purchases should be brought forward to maximise your tax efficiency. New equipment, software licences, or training courses might all qualify.

The Hour Hands team says: We highly recommend that you use October to establish better financial habits. 

For example, we like to create a monthly financial dashboard that tracks your key metrics including cash flow, profit margins, and outstanding debtors. When you can see these numbers regularly, you make better decisions throughout the year.

If you have any questions about your bookkeeping – contact Hour Hands

October bookkeeping isn’t just about compliance, it’s about taking control. When you know exactly where your business stands financially, you can make confident decisions about everything from staffing to investment to growth strategies.

Add Hour Hands to your contacts list if you need help with any aspect of your business including bookkeeping and admin. We can help on an ongoing basis or with one off tasks such as developing a business plan, organising a team recognition event, or if you simply need a ‘helping hand’ with a task or three. 

If you think that we can help – or if you’d like to talk about it and find out, do fill in the contact form or give us a call. We’re always on hand and happy to help!