Holiday season cash flow for your small business

Is Your Business Cash Flow Ready for the Holidays?

Are you planning a break from your business this year?

The holiday season can be a challenging time for small businesses. Expenses continue to pile up, while cash flow can suffer due to debtors taking their own vacations.

But don't worry! With a bit of pre-planning and proactive measures, you can set your business up for a financially stress-free holiday period.

Here are some tips to help you plan your cash flow over the holidays:

Invoice early: Send out all invoices as soon as possible, ideally in advance of the holiday break. You might consider offering special deals or discounts to clients who book services or make purchases in advance.

Chase payment: Don't let invoices linger! Use this opportunity to diligently follow up on outstanding payments. Strong communication and relationship building are key, so be proactive in reaching out to your clients.

Talk to your suppliers: Honesty is the best policy. Approach your suppliers and see if they're open to extending a line of credit for your payments during the holiday period. In most cases, good suppliers would rather offer some flexibility to maintain a valuable business relationship.

Review your expenses: It's crucial to have a clear picture of your payroll and any other planned expenses that you'll need to cover during the break. Additionally, take some time to review your overall expenses. Business costs can easily creep up, so it's a good idea to regularly audit your spending. Look for any subscriptions or recurring payments you can temporarily pause or cancel. Consider alternatives for upcoming travel, events, or purchases.

Talk to your bank or ATO: If you anticipate cash flow issues, reach out to your bank or tax department early. They can help you develop a plan to manage your finances during the holiday period.

Don't stress! We're here to help.

We understand the challenges of managing business finances during the holiday season. We offer a range of services to help you navigate this period, including:

• Cash flow forecasting and budgeting
• Tax planning and advice
• Bookkeeping and financial reporting

By planning ahead and seeking professional guidance, you can ensure your business is financially healthy and ready for a successful holiday season.

Contact us today to schedule a consultation and learn how we can help you achieve your financial goals.