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Are you prepared financially for the holiday season?

Article courtesy of Lisa Martin, GoFi8ure - http://www.gofi8ure.co.nz/
As soon as the calendar flips to November, holiday decorations begin appearing in stores with the not-so-subtle reminder that we only have a few short weeks to make this the most perfect holiday season ever. Whilst employees are planning their Christmas and holiday break, business owners are having to plan their cash-flow and make sure they have everything covered.

It is a tough time for business owners, not only have they just gotten through the last GST round, they now have to cover wages, downtime when they shut down and GST again in early January. What a lot to juggle!

So, what can you do to avoid financial distress in the holiday season?

  • Having a budget for the holidays will help you achieve the year-round goal of avoiding unnecessary and inefficient debt. Work towards having a minimum of 3 months worth of cash available so that you can tap into it when unexpected expenses come along. You also need to think about your staff wages over the holidays, paying for public holidays and holiday pay.
  • Get your Bookkeeper or Accounts person to calculate your GST before you close for the holiday break. Don't risk a late payment just because you are unprepared. You end up paying interest and penalty fees which could go on other expenses so do it before you go away.
  • Use Tools to Manage Cash Flow - Cash flow management can cause a great deal of small business stress. Invoice due dates and financing require working capital and missed payments can lead to damaged credit. Opening up to assistance can help you take charge of your accounts receivable and help manage your cash flow calendar in one swoop.