Taking leave from the business this year?
The holiday season is often challenging for small businesses, as expenses continue to accrue while debtor payments may slow or temporarily cease. To protect liquidity during this period, it is important to review and strengthen your cash flow position in advance. With structured planning, you can approach the break with clarity and reduced financial pressure.
Cash-flow planning considerations:
- Invoice ahead of schedule: Finalise and issue invoices as early as possible. Where suitable, explore retainer arrangements or advance-payment options for regular customers to secure future income.
- Pursue overdue accounts: Prioritise debt collection before closing for the break. Maintain open dialogue with clients and apply consistent follow-up to encourage payment.
- Discuss terms with suppliers: Honest communication often leads to mutually beneficial outcomes. Many suppliers will be open to extending credit terms or offering short-term flexibility to support an ongoing relationship.
- Assess cost commitments: Review payroll requirements and any known or anticipated expenses. Conduct a broader cost audit to identify increases or non-essential outlays. Evaluate subscriptions, recurring charges, travel plans, functions and upcoming purchases to determine if adjustments can be made.
- Engage early with your bank or the ATO: If cash-flow constraints are expected, reach out proactively to explore available arrangements or support options.
We’re here to assist you in preparing for the holiday period and managing cash-flow risks, so you can take the break you deserve.
When arranging your time away, please contact us to schedule a meeting.
