This time of year can be challenging for small businesses, so early planning is key to ensuring a healthy cash flow over the holidays.
Whether you’re preparing for a holiday break or simply aiming for better work-life balance, keeping your cash flow in check is crucial. This requires proactive pre-planning.
Even when you’re away from the office, overheads and salaries still need to be managed. If taking time off means a decrease in cash flow, it’s vital to prepare accordingly. Have a clear understanding of your payroll and any other anticipated expenses that need to be covered.
If there’s a possibility of a shortfall, address it proactively. This might involve negotiating arrangements with suppliers or creditors or reevaluating other business expenses to ensure the business and your staff are not adversely affected.
Here are some tips to minimise cash flow stress during the holiday period:
- Invoice Early: Send invoices in advance if possible and consider offering retainer deals to regular clients or customers.
- Chase Payments: Follow up on outstanding invoices with strong communication and relationship-building efforts.
- Discuss with Suppliers: Honest conversations with suppliers may lead to extended lines of credit or flexible payment arrangements.
- Review Costs: Regularly review expenses to identify areas where costs can be reduced or alternative approaches can be taken.
- Communication with Financial Institutions: If cash flow is tight, initiate discussions with banks or the tax office early to secure necessary support.
When planning for a break, schedule an appointment with us. We can help navigate the holiday period and provide guidance to alleviate cash flow concerns, ensuring you enjoy a well-deserved break.
