Cashflow Tips for the Festive Season

The Festive Season comes around every year faster than expected, and already Christmas and the New Year are bearing down upon us.

Everyone should get a chance to enjoy the most wonderful time of the year, but small business owners and managers often find themselves burning the Christmas candle at both ends to keep their company functioning over the holidays.

With a little planning and preparation, however, there shouldn’t be anything to stop you from enjoying the festivities while your business runs smoothly in spite of the disruption that the silly season brings. Here are a few tips to help you and your business start the new year in the right way.

Get Ahead by Invoicing Early

Your business and many others are going to be disrupted by worker holidays, and suffer a general slowdown in productivity as everyone gets prepared for their celebrations.

Invoice early and often so that your business isn’t waiting for payments while your employee holidays use up your cashflow. Try to chase up every unsettled account in the first week, and don’t delay cashing cheques; the banks have festive holidays too.

Have Some Cash Reserves Ready to be Used

Just like any family saves money throughout the year to cover their Christmastime expenses, any business should put a little aside to cover shortages in cashflow during silly season.

Even if you can only hold back some profit from the proceeding months, just a little bit of extra cash can help you cover sudden festive expenses or late payments from stressed customers.

Don’t be too Generous, But Reward Your Employees

It is important to reward your employees for their hard work, and the festive period provides the perfect excuse to give your workers something back in bonuses, or with a Christmas party, or even both.

It is easy for an employer to get carried away though, so make sure you don’t spoil your employees and be too generous. Something like a Christmas lunch or a party is a good way to reward the performance of a whole team, and can be quite cost effective. Save bonuses for employees that are
integral to your success, and have performed consistently throughout the year.

The silly season of Christmastime can truly be the most wonderful time of the year, even for small businesses with costs to cover. Just make sure you plan ahead and join in the festivities, don’t let Christmas creep up on you.

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