As the holidays approach, it's time for business owners to put on their financial Santa hats and plan ahead for the holiday break. This stretch of irregular cash flow can be challenging, but with some strategic moves, you can turn the tide in your favour. here's some tips to keep your cash flow healthy and robust over festive season.
1. Prompt Payment Powerhouse
Be the early elf by sending out invoices promptly. Not only does this give your customers ample time to process payments, but it also sets a clear expectation for timely transactions. Consider discussing with your clients the option of settling payments before they close shop for the season. With many businesses temporarily shutting, missing a payment run could affect your cash flow during the holiday period. Remember, a little extra attention to your invoicing process now can pay off later.
2. Cost Trimming without the Scrooge Effect
You don't have to be a full-fledged Scrooge to trim costs effectively. Focus on expenses that deliver tangible results. If there are expenditures yielding little to no return, it might be time to reevaluate. This holiday season, resolve to allocate resources where they count the most.
3. A Supplier Spring Clean
When was the last time you revisited your list of preferred suppliers? It's a perfect opportunity for a clean slate and a fresh perspective. Review old supplier agreements and consider negotiating better terms, lower fees, or added value. Embrace the new year as a chance to refresh partnerships and explore alternative options. Stay vigilant about market trends and seize any seasonal opportunities for a profitable return or to clear out stock that may seem less appealing.
4. Stash Some Cash for a Merry Reserve
A well-padded cash reserve in a separate account could make all the difference between a joyful "Ho! Ho! Ho!" and an unfortunate "Oh No! No! No!" Ensure you have a respectable nest egg set aside, providing a safety net during any unexpected turns in the holiday season.
By keeping these tips in mind, you'll be better equipped to navigate the holiday season with financial finesse, ensuring a prosperous start to the new year. Remember, a little strategic thinking now can lead to a brighter, more secure future for your business. Happy holidays! 🌟
The holiday hustle and bustle can be a whirlwind for business owners. Here's your guide to navigating Christmas expenses correctly, covering everything from parties to gifts and donations.
Christmas Parties
It's time to spread some holiday cheer! Hosting a Christmas party is a wonderful way to wrap up the year. But, of course, there are tax considerations to keep in mind. You can claim a portion of the costs for food, drink, and entertainment. And expenses like venue hire are fully claimable.
Business Gifts
Thinking of spreading some festive joy with gifts? You can certainly claim these as a business expense. Just remember, if it's food, drink, or entertainment (or vouchers for these), only half the cost is claimable. Take a moment to separate out costs if your gift contains various items, like a hamper.
Giving to Charity
Giving back during the holidays is a heartwarming tradition. You can deduct 100% of the cost of entertainment provided to the public for charitable purposes. For instance, if your business donates food to a hospital party, that's a worthy cause.
Holiday Pay
Our hardworking employees deserve some holiday cheer too! They get a paid day off on public holidays that fall on their working days. And if they do work on a public holiday, they're entitled to time and a half, plus a potential alternative day off.
Remember, public holidays may be "Mondayised" or "Tuesdayised" if they fall on a weekend.
If you're in need of any assistance with holiday pay calculations over the Christmas period, reach out to Kristen. We're here to help make this holiday season smooth and stress-free for you and your team. Happy holidays!