We’ve all heard it before – ‘Cashflow is the lifeblood of any business” and it’s true, so we should do everything we can to ensure the money keeps coming, however we’re soon to be entering the season when a Christmas is going to get in the way.
Many businesses will shut down for the festive period, which means your customers won’t be paying any of their bills. In the meantime, you’ll need to be paying your employees holiday pay and not getting in any more new business as your team open presents and drink sherry, so cashflow becomes doubly important as you need to bring in the cash before the Christmas shutdown begins.
There are however a few simple things you can do in order to make this a pain free period:
- Invoice as soon as you can – if you want your invoices paying before Christmas then work out when you need to send them by taking your payment terms and the last Christmas post into account. If it arrives on the accounts payable desk too close to Christmas it might get put on the ‘next year’ pile
- Ask for payments before they become due – don’t wait until an invoice becomes due before chasing it, instead contact your customers as soon as an invoice looks like it might become due to get it processed before the office parties and mince pies
- Keep your spending under control – if there’s a chance you might not get all your income received before Christmas then keep an eye on your spending so your cashflow can cope, even if it means a New Year party rather than a Christmas party