Make this Holiday Period Financially Stress-free
Holiday breaks are a chance to recharge for the year ahead, especially after the year we have had. We look forward to warmer weather and finally setting up an out-of-office email for the break. However, the holiday period won’t be stress-free for business owners without careful cash flow planning.
Even if you continue operating through the holiday season, your customers’ financial behaviour may not remain the same.
The strategies and tips shared below are generalised. However, we are here if you need to budget and prepare a cash flow forecast. We can also help if you need assistance applying for short-term finance to get you through the break.
Why is cash flow planning particularly important at this time of year?
Staff leave needs to be covered in addition to your normal fixed overheads like rent, creditors, and tax compliance. The budget and forecasting process ensures you know your numbers and are prepared. If you are closing the doors for a bit, you won’t be driving revenue during this period, and sales may take time to get started again in the new year.
Here are some simple strategies that can help
- Decide your holiday break dates – Confirm these with staff, customers and suppliers.
- Budget and plan for annual leave – You may need to factor in temp staff.
- Decide – if you will pay out leave in full at the beginning of the break or continue to pay as usual throughout the break.
- Review your work in progress (WIP) – Plan to complete jobs or services that can be invoiced and paid (remember, if you don’t invoice and get paid before the break, you may not see the money for another month).
- Capacity planning – There is often a rush to get everything done before summer holidays, whether it’s the kitchen benchtop installed or the beauty treatment before the break, so make sure you have the capacity to maximise on this.
- Stock-take – Do you need to order goods now to be able to complete work in progress? Check that there is stock on hand available.
- Making an arrangement with the Tax Office – If you can not make payments, applying for an instalment arrangement is possible. There are costs associated with this. However, it may provide a solution that gets you through the holiday. Talk to us – we can help.
Need financial support?
If you can’t make ends meet, now is the time to organise short-term financial relief. Please let us know if you need any help with cash flow forecasting, budgeting, or finance applications. We hope you will have a stress-free holiday period.