Red wrapped box with a silver bow christmas present.

Your Business Cashflow Checklist (Christmas & New Year) Period

The Christmas and New Year holidays require business owners to give thought to how they are going to run their business during that period. It's important to prioritise the actions required to manage cashflow successfully.

The checklist below is a reminder of the key actions that all business owners should take in regards to sales, staffing, expenses, and funding related matters.

Sales:

  • Make sure you invoice earlier in December so you do not miss your customers' processing run and their timely payment.
  • Focus on collecting your debtors before your customers close their office for the holidays;
  • To increase cashflow in the short term, close any outstanding sales orders and focus on sales that have a short sales cycle versus more complex transactions;
  • Focus on sales where there is the opportunity to run down inventory, including your fast moving inventory items;
  • Invoice your outstanding work in progress;
  • Quit slow-moving and old stock – if you have not sold it now, take the loss and convert it into cash.
Staffing:
  • Review your staff levels;
  • Encourage people to take leave if appropriate;
  • Review your level of casual staff compared to permanent employees;
  • Review overtime levels.
Expenses:
  • Review all discretionary expenditure, including training, travel etc;
  • Return any hire equipment not needed over the holiday period.
Funding:
  • Prepare your December, January, and February weekly cashflow forecasts to identify any funding shortfalls;
  • If needed, renegotiate terms with key suppliers, speak the tax office or seek additional funding from your bank.
  • If you need any assistance with the above, please contact our office.

Written by: Sally Storey | Partner

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Disclaimer
The information provided here does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice.  We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.