Holiday breaks are 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 cashflow planning.
Even if you do continue to operate through the holiday season, your customers’ financial behaviour may not remain the same.
The strategies and tips shared below are generalised, however, we are here if you need to budget and prepare a cashflow forecast. We can also help if you need assistance in applying for short-term finance to get you through the break. Let’s share some holiday cashflow strategies below.
Why is cashflow 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 closing the doors for a bit, 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:
Set Clear Holiday Break Dates:
Confirm holiday break dates with staff, customers, and suppliers to manage expectations.
Budget and Plan for Annual Leave:
Factor in temporary staff if needed to cover staff leave during the break.
Decide on Leave Payouts:
Decide whether to pay out leave in full at the beginning of the break or continue regular payments throughout.
Review Work in Progress (WIP):
Plan to complete jobs or services that can be invoiced and paid before the break.
Anticipate a rush before the holidays and ensure you have the capacity to maximise opportunities.
Assess if you need to order goods in advance to complete work in progress.
Making Arrangements with the Tax Office:
If facing difficulties in making payments, explore the option of applying for an instalment arrangement with the Tax Office. Consult with us for assistance and find out more here: www.ato.gov.au/individuals-and-families/paying-the-ato/help-with-paying/payment-plans
Need financial support?
If you can’t make ends meet, now is the time to organise short-term financial relief. Please let us know if you need any help with cashflow forecasting, budgeting or finance applications.