It’s that time of year again, Christmas is right around the corner!
Every year it comes around so fast and every time we promise ourselves that we won’t drink as much at this year’s Christmas party, or have that third serving of nan’s pavlova at the family lunch.
Unlike these promises (which we know are empty), as business owners we need to promise ourselves to be more cash savvy this silly season. Although your employees may be excited for a few days off, this time of the year can be one of the more stressful times for your cash flow.
We have a few tips & tricks for you to help you keep afloat over the Christmas Break & into the New Year.
Every Tom, Dick & Harry needs a break over the silly season, so to avoid your bills being pushed aside by your clients, it is important to get those invoices out quickly. The earlier you get them out, the sooner you’ll see those funds rolling in. Give your clients time to prepare their cash flows, by giving them their invoices early.
Don’t be too nice
Communication is key leading up to the Christmas Break, so don’t be afraid to mention a looming invoice that may be due. Businesses often wait too long to chase invoices to avoid pestering their clients. Don’t let this happen to you, make sure you get on the front foot with chasing your debtors. Don’t forget to set up your invoice reminders on Xero too, so that even when you do take time off, your software is still working for you.
Forecast your cash flow
If you know that things are going to slow down around Christmas & into January, it is good to get a rough idea of what your expected cash flow will be. Forecasting your expected expenses and incomings over the coming weeks can assist you when things start to become a little tight. Think long term & over prepare, putting away a little extra cash now can help you when things start to wind down.
The festive season is meant to be a time to allow you to kick the feet up & destress. So, put the hard work in now, organise yourself & your cash flow, and give yourself a well-deserved break over Christmas.