Strategies for Boosting Cash Flow During the Holiday Season
With Christmas fast approaching, many business owners are feeling the stress this festive season.
In fact, a YouGov study revealed that 65% of small business owners feel stressed from managing cash flow at this time of year.
But fear not! With the right preparation, you can enter the new year with a healthy cash-flow position.
We’ve prepared a handy set of tips on how to master your cash flow for the new year:
Analyse past revenue and expenses to anticipate working capital needs. Identify potential cash flow gaps and start the new year off right!
Many clients will be busy with their own jobs or planning their own holidays, so touching base to remind them to pay their invoices is essential.
Send invoices early to maintain cash flow and avoid financial strains during the slow Christmas period. You don’t want to be waiting on overdue accounts in January!
Be Wise With Holiday Spending:
The festive season is the time to thank your team for all their efforts. So, keep a budget so you know how much your Christmas bonuses and/or gifts are going to cost your business to make sure you can cover costs without affecting your cash flow.
Increased sales result in higher GST, and tax payments can be overlooked during the hectic holiday season.
Setting aside funds to cover tax bills and other overheads in advance will alleviate some of that cash flow stress!
Hold Off on Large Purchases:
Manage cash flow by postponing large sum cash purchases until the new year, especially If it’s not crucial to your sales and operations during the holiday season.
Secure early financing to bridge seasonal cash flow gaps and capitalise on opportunities. Explore external funding options to be prepared for any scenario.
Remember, being prepared and knowing your financial options during this busy period is crucial. Working on your cash flow management will help you avoid nasty shocks this silly season but will also help you plan to grow your business for the new year.
If you would like further assistance securing the best financial solution for your business, contact us today!
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.