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

This time of year can be hard on small businesses. Your expenses continue and your cash flow can suffer when your debtors go on holiday.

Leading up to the holiday period, is your business cash flow in good health to carry you through? 

With a bit of pre-planning and being proactive, you can set yourself up for a financially stress-free Christmas period.

Planning 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 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 cash flow is tight, make sure you have conversations early, so you have everything in place to see you through.

How Can Tradies Tax Help?

Tradies Tax can help you navigate the holiday period and help alleviate cash flow worries through cash flow forecasting exercises, so you get a well-deserved break.

Our cash flow projection provides influential insights into how to optimise your business performance and achieve growth.

Contact Tradies Tax today for cash flow forecasting, so your small trades business can thrive this Christmas. 

This blog was originally published by BOMA, with minor edits made by Tradies Tax for the benefit of our readers.