The last quarter is often an exciting period for entrepreneurs. Invoices are running up, customers are taking vacation, and you want to end the year on a good note. In this article you can read how to keep your cash flow healthy during these busy months, so that you can enter the new year with peace and overview.
Why the last quarter is crucial for your cash flow
Cash flow literally means the flow of money in your business — what comes in and what goes out. The differences can be significant at the end of the year: VAT payments, end-of-year expenses, and sometimes slow payments from customers. Without good insight you can end up unnecessarily short-handed, even if you make a profit.
Important rules and percentages (2025)
From 2025, the low VAT rate will remain 9% and the high rate 21%. Entrepreneurs pay VAT for the fourth quarter no later than January 31, 2026. You also pay income tax on your profit for the entire year; it is smart to make a reservation now. You can adjust the provisional income tax assessment this quarter to avoid surprises
If you work with staff or a DGA salary in a BV, also take the payment of payroll tax and the end-of-year bonus into account. These items put additional pressure on your cash flow in Q4.
Practical examples
Suppose a freelance designer sends a large invoice for €10,000 in November. The customer does not pay until January. In the meantime, the designer must pay VAT on that amount in January, without the money already being in the account. Without a buffer, this leads to a temporary shortage. By planning in advance with a cash flow overview, you can see such peaks and valleys coming.
An online store has peak months in December with a lot of turnover. Yet stress arises: stock must be paid for before customers pay. An up-to-date overview of income and expenditure prevents growth from leading to liquidity problems.
Common mistakes in the fourth quarter
A classic mistake is confusing profit and cash flow. You can be profitable on paper, but still have too little money to pay bills. Also common: late invoicing, forgotten VAT payments, and not taking into account the annual insurance or software costs that are written off in December.
In addition, entrepreneurs often overestimate their outstanding invoices. Money that has not yet been received only counts when it is in your account.
Step-by-step plan for a healthy cash flow in Q4
1. Map your expected income and expenses. Use a cash flow template or spreadsheet in which you can see what comes in and goes out month by month.
2. Expedite payments where possible. Send invoices immediately after delivery and offer a small discount for prompt payment.
3. Prioritize your spending. Pay fixed costs and taxes first. Major investments? Consider pushing this to January if your liquidity is tight.
4. Make reservations for tax and VAT. Set aside a percentage of your income every week. The Template: Setting aside for your taxes helps you calculate exactly how much that should be.
5. Check your provisional income tax assessment. Too high? Have this adjusted so that you do not pay unnecessarily too much this quarter.
6. Calculate scenarios for December. What happens if customers pay later or you have to purchase more stock? This way you prevent panic in the event of surprises.
Summary checklist
- Check your outstanding invoices and send reminders
- Calculate your expected VAT payment (before January 31)
- Plan major expenses carefully
- Set aside money for taxes and ZVW
- Use one cash flow statement for insight into Q4
Need help? Use the Cashflow template
With the Cash flow template From The Happy Financial you get immediate insight into your income and expenses per month. You can see at a glance whether you have sufficient buffer and where the risks lie. This way you keep control of your cash flows, even in the busiest quarter of the year.
Download the Cashflow template and work with peace and clarity on a financially healthy year-end closing.
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