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Holiday cash flow for your small business

Planning to take a well-deserved break from your business this year?

The holiday season can place significant strain on small businesses. Operating expenses continue as usual, while cash flow may be disrupted if debtors are also on holiday.

Is your cash flow prepared to sustain your business during this period? With strategic planning and proactive measures, you can position yourself for a stress-free holiday season.

Tips for Managing Cash Flow Over the Holidays

  • Invoice Promptly
    Send invoices as early as possible and consider issuing them in advance where appropriate. For regular clients, explore the possibility of retainers or advance payments for services or products to secure early cash inflows.
  • Follow Up on Outstanding Payments
    Take this opportunity to chase overdue invoices. Maintaining clear communication and strong client relationships is key to ensuring timely payments.
  • Discuss Terms with Suppliers
    Open a dialogue with your suppliers to explore options such as extending payment terms or temporary credit arrangements. Many suppliers are willing to offer flexibility to preserve valuable business relationships.
  • Review and Plan for Expenses
    Conduct a thorough review of your payroll and any other expenses due during the holiday period. Examine regular payments, subscriptions, and upcoming costs to identify potential savings. Consider alternative solutions for discretionary expenses such as travel, events, or planned purchases.
  • Engage Early with Banks or the ATO
    If cash flow is tight, act early by contacting your bank or the ATO to discuss options such as short-term financing or adjusted payment schedules. Taking action in advance will help you avoid financial pressure later.

We are here to assist with cash flow planning and management, helping to alleviate financial concerns and ensuring your business remains stable during the holiday period.

Contact us to schedule an appointment and take the first step towards a financially secure and relaxing holiday.

Graham Burfield
Author
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