Budgeting for Year-End Expenses: How to Prepare Now for a Strong Finish

As the end of the year approaches, we all know how easy it is for finances to get out of control. Whether you're juggling holiday shopping or wrapping up business expenses, staying on top of your budget can make a huge difference.

The good news? With some simple planning, you can finish the year strong—without the financial stress.

Let’s walk through how you can get ahead of those year-end expenses and set yourself up for success.

Your Guide to Year-End Budgeting

1. Identify Your Year-End Expenses

Start by making a list of every possible expense between now and the end of the year. For small business owners, this means accounting for:

• Taxes - Quarterly payments, sales tax filings, or even finalizing payroll taxes.
• Employee Bonuses - If you offer holiday or year-end bonuses, factor these in early.
• Holiday Spending - Between gifts, events, and travel, holiday costs can sneak up fast.
• Business Investments - Year-end is often the time to make final purchases or invest in software upgrades for your business.

Planning for these now ensures that you won’t be caught off guard when those bills hit.

2. Set Realistic Budget Limits

Once you’ve identified your upcoming expenses, it’s time to set limits. Take a look at your financial history from last year to get a feel for what your typical year-end spending looks like. This can help you avoid overspending in both personal and business categories.

For your small business, make sure you’re setting aside enough to cover taxes and any payroll obligations, while also leaving room for potential investments or holiday promotions.

3. Build a Cushion for Surprises

Unexpected expenses always pop up, whether it’s a client request you didn’t plan for or an unplanned travel expense. To stay prepared, allocate a portion of your budget (5-10%) as a “just-in-case” reserve.

Having this buffer allows you to roll with any punches and still meet your financial goals without having to scramble.

4. Regularly Review and Adjust

Budgeting isn’t a one-and-done deal. As you move through the quarter, check in on your spending. If you’ve spent more on one area, like holiday gifts or marketing, find places where you can pull back to stay balanced. This way, you won’t be caught off guard when tax payments or payroll hit in December.

Resources to Help You Budget Like a Pro

Now that you have your budgeting strategy, let’s talk about the tools that can make the process easier. As a small business owner, it’s important to have resources that are both practical and time-saving.

✶  USAA’s Budgeting Resources

USAA offers some great tools like their budgeting calculator and templates. If you're looking to manage both personal and business finances, their articles break down how to set up a solid budget and stick to it. 

This is especially helpful for small business owners who have multiple streams of income or expenses that fluctuate from month to month.

✶  QuickBooks Budgeting Tool

For small business owners, the QuickBooks Budgeting Tool is a lifesaver. It lets you set up a detailed budget and track your income and expenses in real-time. 

This is key for tax planning and year-end reporting. You can easily set spending limits for categories like payroll, office expenses, or marketing, and the tool will alert you if you're over budget.

If you’re using QuickBooks already, take advantage of this feature, it’s designed to keep your business finances organized and audit-proof.

✶  Suze Orman’s Action Plan

Suze Orman has some fantastic advice on year-end finances, and her Action Plan is full of tips to help small business owners plan ahead. 

Her toolkit is great if you're looking for practical steps to create an emergency fund or pay off lingering business debts before the year is up. 

Suze’s advice is straightforward and action-oriented, which is exactly what you need when you’re feeling overwhelmed by year-end financial decisions.

Conclusion

Get Professional Help for Your Year-End Budgeting

If you’re feeling uncertain about managing these expenses or need help navigating year-end budgeting, I’m here to help. Book a 20-minute new client consultation today, and we’ll work through your specific situation, so you can close out the year with confidence.

And don’t forget to pre-order my upcoming book Mastering QuickBooks 2025, Sixth Edition! It’s packed with insights to help you master your small business finances and start next year on the right foot.