The end-of-year shutdown period is a time of well-deserved rest for employers and workers, as well as an opportunity to review a few things about your business. As the new year approaches, our mindset can often default to going through the motions until the holidays. However, preparing for the next year beforehand means you can hit the ground running.
Let’s have a look at what you can do to prepare your business for the end-of-year shutdown.
Communicate Shutdown
Letting your customers and employees know about the scheduled shutdown is an obvious task, but also something you need to be absolutely clear about.
Communicating with customers
When communicating with customers about your shutdown, the most important things are:
- Business close date and re-open
- Deadline to get orders/service in or booked
- Outstanding payments
When communicating with customers, make sure that they are up to date with all payable invoices. As you enter the new year, the last thing your business needs is poor cash flow. For instance, if you primarily operate as a business-to-business (B2B) company, in some circumstances, you may have 30, 60, or 90 payment windows from specific customers. The shutdown could pose an issue where December adds another month of non-payment.
Employee Communication
Your discussions with your employees should cover two things:
- Housekeeping: Annual leave (check relevant awards), holiday hours (if open), bonuses, and length of shutdown.
- Employee future: Salary review, development opportunities, and goals.
The end-of-year shutdown comes as a much-needed break for your employees, so make sure to cap everything off with the obligatory housekeeping requirements, as well as what their future looks like. Not every employee is there for the long term, but those who are should be prioritised as a skills investment. When discussing with your employees, consider addressing pay (if necessary), their career goals, and opportunities for skill development.
Finance Overview
For your finances, ensure that you tie up any loose accounting ends, including accounts payable, receivable, and inventory management. You also want to review your business goals. This review can range from:
- Scaling your business position
- Reviewing your business strategic plan
- Planning your business goals
Having a clear picture of your finances and what you want your business to achieve is wise going into every year. When you reopen, you’re not looking to get back up to speed. This will also help you enjoy the break, rather than creating anxiety about tasks to do when you return.
Prep for industry changes
Each year brings some sort of industry change, large or small, and not being prepared for them can pose risks to your business. This is why keeping up to date with small business news is important.
For instance, in 2026, there will be a huge compliance change for businesses regarding superannuation contributions. Payday Super requires businesses to pay employee super contributions within seven business days of salary and wages. If you don’t have a plan, you might scramble to find a payroll solution that keeps you compliant and eases the additional administrative burden.
Switch off for the holidays
Another critical aspect of the end-of-year shutdown is your own plans to take time off. Running a business is stressful, and the shutdown period provides ample rest to focus on yourself and your family. Since burnout affects up to 1 in 2 small business owners in Australia, you need to prioritise your own health. Failing to address burnout will ultimately lead to more problems in the long run, such as needing to take more time off for health reasons.
Shutting down for the holidays
Completing your checklist for the shutdown period will prepare you for reopening. The opportunity to examine your business and its components holistically will help shape your expectations and understand what your business can do next year. With a plan in place, you have peace of mind knowing that when you do shut down, your business is covered, and you have time to relax and enjoy your summer holidays.
