In a work move I haven’t pulled since 2014, I’m racing right up to 3 PM on Christmas Eve.  I’m writing this at 8 PM on December 23 by the light of the Christmas tree. I have a backlog of heads-down work that’s been challenging to fit in amidst time-sensitive, year-end work for clients.

As I was driving into the office today, I started thinking about the things I didn’t do this year. Particularly, take a real vacation. But I quickly reframed my thinking into gratitude. I’m thankful for the challenging experiences of the past year. They’ve forced me to rethink how I work, how the market has changed, and how I want to rebuild my team. 

But I have a lot of gratitude for the experience of 2024. 

Difficult years ask us to look the challenges of self-employment in the face. Do we want to continue with our businesses? Is being an entrepreneur a fulfilling, purposeful path? If we have breakthroughs, it builds our confidence that we can find success, regardless of economic conditions. On the flip side, we may realize that we have done this long enough and want to go another way.

Whichever direction you’ve chosen, take a moment this holiday season to be grateful for the lessons you’ve learned, the strangers who have become your friends and community, and the personal growth you’ve achieved, even it’s not reflected in a revenue number. Happy holidays.

Last Chance Dates to Know

If you’re still wrapping up, a reminder of a few December 31 deadlines:

• Last day to record W-2 payrolls. Looking at you, S-corp owners.

• Last day for 2024 qualified business expense tax deductions. If you want the deduction, the purchase must be fully cleared from your account on or before the 31st. Charges and ACH transactions may take up to three days to clear. 

• Last day to open a 2024 401k. While you can wait to fund the 401k until next year, you must establish the account on or before December 31 if you want your contributions to count toward 2024. This only applies to 401ks; a SEP or SIMPLE IRA can be set up later.

December AMA

Thanks to everyone who joined my December AMA! We had lots of real-time questions from the group about health insurance, pricing membership products, and sustaining your business while you have a full-time job. Check out the replay here.

For 2025, we’re keeping the same standing date, the second Thursday of the month at 10 AM Pacific. I’ll be back on January 9. Send me your questions at [email protected]. Add all of my 2025 AMAs to your calendar using this link.

For reference, here’s the checklist. If you’re following along, you might have a payroll left to run, and maybe a bit of paperwork on 2025 benefits. If you need the speed version, here’s the condensed 5 Weeks to Close that extends to December 31.

Given the short weeks head, it may be challenging to hit the direct deposit deadline for final payrolls (approximately December 27). You can process payrolls until the 31st; you’ll just need to pay out the money using a fast direct transfer like 1-day ACH, wire transfer, or Zelle.. Run the payroll in the system so it’s included in your year-end payroll tax reporting and choose the option to pay by check. The withdrawal transaction must be recorded in your bank account by December 31.

If you have a couple of slow days, get organized for your January tax reporting requirements.

• W-2s: have you entered the supplemental benefits your team receives during the year? Mobile stipends, company-paid insurance and benefits, and retirement savings need to be reflected on your team’s W-2s. With those payments completed, get a head start on your updates. 

• 1099s: you’ll need to prepare 1099s for any contractors you paid more than $600 in a calendar year. The exceptions are if they’re an S-corp or you paid by credit card. Your 1099s are due by January 31. Get a jump on organizing your W-9s and checking that you have a summary ready. This requirement can really derail your January; it’s worth getting organized now. Here’s a detailed summary of 1099 requirements with recommendations on how to make reporting season easier.

• BloombergBusinessweek: Buldak Ramen made headlines this year when it was banned in Denmark for being dangerously spicy for the locals. Unusually for a South Korean family businesses, this global phenomenon was created by a woman. In 1998, the patriarch of the stagnant family business made the unconventional move of encouraging his daughter-in-law, then a stay-at-home parent, to get involved in product development. The family now has shared wealth of about $1.1 billion. The long read here.

• ABC News: Dreaming of a warm summer vacation in Europe? Starting this spring, in addition to the US travel requirements, US passport holders will be required to pre-register for temporary visas to the European Union. Applications cost €7 and most will be approved immediately. Once issued, the visas are valid for three years, unless your passport expires. The new EU Entry-Exit system is scheduled to go live in May 2025. 

• Vox: Will your holiday include new technology? As you upgrade, consider recycling your expired tech. Only 12% of electronics are recycled, but they are full of valuable components and rare minerals. Reduce the environmental impact of incremental mining (and leaching into groundwater) by taking those broken cords and 10-year-old laptops back to a recycling center. Staples and Best Buy collect e-waste, and brands like Trashie provide shipping boxes for easy collection. 

• BBC Science Focus: Thinking about your health goals for 2025? As entrepreneurs, we ask a lot of our bodies. When we’re sick, it can shut down our companies. After all the exposure to family, friends, and strangers, use this guide to strengthen your immune defenses before the winter convention season begins.