Are you heading away for a break from the business this year?

This time of year can be tough on small business. Your expenses continue and your cashflow can suffer when your debtors go on holiday.

As the holiday season approaches, is your business cash flow in good health to carry you through to the New Year? With a bit of pre-planning and being proactive, you can set yourself up for a financially stress-free holiday.

Managing your cash-flow over the holiday period

Invoice early

Send any invoices that you can, and in advance if possible. Perhaps consider whether you have any regular clients or customers that you could offer a retainer or similar deal to if they book services or make a purchase from you in advance.

Chase payment

Use this opportunity to chase up any outstanding payments. Strong communication and relationships matter – talk to clients and chase invoices.

Talk to suppliers

A little honesty can go a long way. Perhaps they can extend a line of credit for your payments to them. In most cases, a good supplier would rather offer a little flexibility to keep an ongoing business relationship.

Review your costs

Make sure you have a clear picture of your payroll, and any other planned expenses that will need to be accounted for. It’s also a good idea to do a general review of expenses. Business costs can creep up, and it’s a great idea to make a time to check on your expenses regularly, no matter what your financial situation. Review all of your regular payments and subscriptions as well as upcoming costs. There may be travel, functions or purchases which you can decide on an alternative approach to.

Talk to the bank or tax department

If cashflow is tight, make sure you have conversations early so you have everything in place to see you through.

Get in touch, we can help you navigate the holiday period and help you alleviate cashflow worries. So you get a well deserved break.