7 Year-end closing tips for entrepreneurs: Start 2026 with a clean slate (and a full bank account)
For many SME entrepreneurs, December is a month with two faces. On one hand, there are the holidays and looking forward to the new year. On the other, you feel the time pressure: finishing projects, getting the administration in order, and (perhaps) worrying about cash flow.
Because let's be honest: you do not want to close the year with a large list of unpaid invoices.
As an entrepreneur, you know that liquidity is the oxygen of your company. Yet, accounts receivable management is often neglected due to daily hectic schedules. A pity, because this period offers significant opportunities for gain. Therefore, we have 7 practical year-end tips that ensure peace of mind and money in the bank.
1. Aging analysis: Know where your money is
Measurement is knowledge. Before you can take action, you must know your actual standing. Many entrepreneurs only look at the total amount of outstanding items, but the age of the invoice is many times more important.
Run an aging analysis from your accounting software today.
- 0-30 days: Normal payment behavior.
- 30-60 days: Code orange. Action is required here.
- 60+ days: Code red. Statistically, the chance of payment decreases every day.
incasso.nl Tip: Do not be alarmed by the numbers, but use them as a starting point. Everything older than 45 days deserves your full attention this week.
2. The friendly year-end check
Emailing is easy, but calling is more effective. Especially in December. Use the approaching holidays as a natural hook for a good conversation. You do not have to be strict immediately. A service-oriented attitude often works better.
Call your client to ask how they are doing and ask how you both look back on the collaboration over the past year. Then mention that you are in the process of closing the administration and that there is still an invoice open. Then ask when payment can be expected.
Do you notice resistance or hear excuses? Then you know enough. Stop investing valuable time and move on to tip 6.
3. Reclaiming VAT on uncollectible debts
Do you have clients who have gone bankrupt or for whom it is certain that they will no longer pay your invoice? That is not only painful for your revenue, but it can also mean that you have unfairly paid too much tax. There is a high chance that you have already dutifully paid the VAT on an unpaid sales invoice during your VAT return.
If a claim is definitively uncollectible, you are entitled to a refund of the VAT that you previously paid. Include this in your last VAT return of the year. This is one of those year-end tips that can yield cash immediately.
4. Make agreements regarding the 'thirteenth month'
December is an expensive month for everyone, including your clients. Sometimes the desire to pay is there, but the money is not for the moment.
Be sympathetic and understanding. If a client is unable to pay the full €5,000 now, suggest that they transfer €2,500 before December 31, and the remainder in January.
- Advantage: You have cash flow in before the balance sheet date.
- Advantage: You maintain a good relationship while showing that you are on top of things.
5. Professionalize your terms for 2026
Use the year-end to take a critical look at your own process. Why do clients pay late? Were your payment terms unclear? Were your collection costs not stated correctly in the General Terms and Conditions?
Ensure that you start in January with sharpened terms. This prevents you from running into the same problem at the end of 2026.
6. Set a hard deadline: Time for transfer
As an entrepreneur, you must guard your own efficiency. You are not a bank providing loans to clients, and you are not a collection agency. Have you sent a reminder and called, but the money is still not in your account?
Draw a line and set the date for yourself (e.g., December 20). If payment has not been received by then, transfer the claim to a collection agency.
At Incasso.nl, we understand that you want to maintain the client relationship, but also that you are entitled to your money. By handing this over, you project professionalism. Often, debtors pay immediately after contact from an external agency.
Note! Do you have invoices that are already overdue? Transfer these immediately. The chance is then greater that the invoice will still be paid in the 2025 calendar year.
7. Tax provision for doubtful debts
For larger claims that are not yet definitively uncollectible but are highly doubtful, you can, in consultation with your accountant, in some cases make a provision on the balance sheet.
This lowers your taxable profit for this financial year, meaning you pay less income or corporate tax. It does not solve the payment problem, but it does soften the fiscal pain.
Conclusion: Choose peace and return
You became an entrepreneur because of your passion, not to chase after non-payers. A good year-end does not mean you have to solve everything yourself, but that you ensure it gets solved.
Do you want to start 2026 without outstanding items and without worries? Do not wait until December 31. Submit your outstanding invoices to incasso.nl today, or schedule a no-obligation advisory meeting about structurally outsourcing your accounts receivable management.
