Get payments and debts paid early
Many businesses are getting into the holiday spirit by mid-December, so be sure to invoice promptly and collect outstanding debts. Otherwise, you could end up waiting until mid or late January to get paid. With staff going on holidays, accounting and payables departments might not have the resources on board to pay invoices during this time. So remember to invoice quickly for any work you complete in December.
Check the credit of new customers
Although you might need as many sales as you can get at this time of year, maintain your credit policies and procedures. This should include requiring a credit application from new customers and checking credit references to ensure the new customer is creditworthy. Learn more in Protect Your Business with Credit Policies and Procedures.
Don’t make any unnecessary expenses
If you are in a business that experiences a downturn around during December and January, you will make it more difficult if you take on any large expenses at this time. If you can, postpone these to busier times during the year when you typically have more cash on hand.
Offer discounts for work completed during the slow period
If you keep your doors open between Christmas and New Year’s Day and in early January, you might consider offering discounts during this slow period. The extra sales you make can help you boost your cash flow in late January and February.
Save for tax time
If your sales and cash flow decline during the holiday period, remember that GST and PAYG payments are still due at the end of February if you pay these quarterly. Plan ahead and save what you will need to make these payments when they are due.
Consider short-term unsecured business finance
If holiday trading conditions put a dent in your cash flow, consider getting short-term finance to get through the difficult times. One option is short-term unsecured finance.
Learn more about unsecured business loans and cash flow finance.
