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Financially stress free piggy on christmas holiday on beach

Have you got a strategy for a financially stress-free holiday period?

Have you got a strategy for a financially stress-free holiday period?

Christmas holiday breaks are a time to spend with family, friends & have a chance to recharge for the year ahead. We look forward to warmer weather and finally setting up an out-of-office email for the break. However, for business owners, this time can be stressful without careful cash-flow planning.

Even if you do continue to operate through the holiday shutdown season, your customers' financial behaviour may not remain the same.

It can be pretty disappointing to work hard all year only to find that once you have paid staff, overheads and creditors, you have little or nothing left in the bank to cover your own time off.

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 in 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 shutting down, 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 Christmas and holiday break dates

Confirm these with staff, customers and suppliers.

Budget and plan for annual leave 

Remember the pay rates may be higher than standard hourly rates, also factor in statutory public holidays.

Decide

If you are going to pay out leave in full at the beginning of the Christmas 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 before Christmas (remember if you don’t invoice and get paid before Christmas, you may not see the money until mid to late January).

Capacity planning

There is often a rush to get everything done before Christmas, 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 in 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 find you can not make payments, it is possible to apply for an instalment arrangement. There are costs associated with this, however it may provide a solution that gets you through the holiday period. Talk to us, we can help.


Talk to us about enhancing your financial support

If you can’t make ends meet, now is the time to organise short term financial relief like an arranged overdraft of loan, rather than hoping it will come right. Please let us know if you need any help with cash-flow forecasting, budgeting or finance applications.

Get in touch to improve your cash flow.

Business man with umbrella what is the forecast

What’s in the forecast?

What’s in the forecast?

When we set out on a fishing trip or hike, we always check the weather forecast.

It’s no different in business. The forecast tells us if there’s bad weather (poor cashflow) in store based on the direction we’re heading.

Your forecast will tell you:

  • 1
    Whether you have enough sales in the pipeline to give you the desired level of profit you want for the year.
  • 2
    Whether your margins are appropriate.
  • 3
    If you need to review your pricing or production processes.
  • 4
    If your business is running as efficiently as it could be.
  • 5
    Where savings can be made.
  • 6
    Whether you should invest more to get a better return.
  • 7
    How much money you need to set aside for tax.
  • 8
    How much money you can draw out of the business each month without running short.
  • 9
    How much debt you’ll be able to pay off.
  • 10
    Whether or not you will be able to meet all of the bank’s requirements.

The difference between a business forecast and a weather forecast is that, when the business forecast is showing bad weather, you can do something about it to make the sun come out. The forecast will tell you what’s going well and what’s not, so you can make adjustments to reduce the impact of bad weather.

Just as you wouldn’t go fishing without checking the forecast, you shouldn’t run your business without an annual forecast. So, don’t live in your raincoat, waiting to get soaked - take control and talk to us about getting your forecast done so you know what to expect.

“Planning is bringing the future into the present so that you can do something about it now.” - Alan Lakein

We’re here to help you, every step along the way. Get in touch!

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