Cash Flow Tips for Business Owners During the Holiday Season
Cash Flow Tips for Business Owners During the Holiday Season
The holiday season can get expensive quickly. Between payroll, bonuses, inventory, marketing, gifts, and year-end expenses, your business may have more money going out than usual.
Planning ahead can help you avoid cash flow surprises and head into the new year feeling more prepared.
Here are a few things to focus on:
Plan for holiday expenses: Make a list of additional costs you expect, including bonuses, seasonal help, inventory, marketing, gifts, and holiday events.
Plan for bonuses and time off: Account for additional payroll costs, holiday closures, employee time off, and fewer working days that could affect revenue or productivity.
Collect unpaid invoices: Review outstanding invoices and follow up on overdue payments. Collecting money you’re already owed can give you more cash available for upcoming expenses.
Review upcoming bills: Look ahead at payroll, vendor bills, credit cards, loans, and other payments so you know what’s coming before it hits your account.
Review your inventory: Before ordering more for the holidays, check what you already have. Too much inventory can tie up cash you may need elsewhere.
Set aside money for taxes: Remember, not everything in your bank account is available to spend. Continue setting aside money for upcoming taxes and work with your tax professional to determine what you may owe.
Look ahead at your cash flow: Estimate what you expect to receive and spend over the next few months. Identifying a potential cash shortage early gives you more time to adjust.
A Little Planning Goes a Long Way
The holidays are busy enough without added financial stress. Planning ahead and keeping your books up to date can help you stay organized, protect your cash flow, and start the new year with a clearer financial picture.
Need support keeping your books organized and understanding your cash flow?
Email Leah at [email protected] or call 1-928-880-2616 to learn more.
