Christmas and New Years is a time of celebration where we spend time with loved ones and soak up the summer sunshine. Unfortunately this sometimes means we get a little excited and overlook the planning side of things for our business. Here are three quick tips to prepare your small business for the holidays.
1. Have a plan for your customers
Ensure that there is an efficient and effective credit policy in place. As the end of the year approaches people go into holiday mode and it’s likely many invoices won’t be paid until the new year, creating a strain on your cash flow. Make sure you are invoicing customers promptly as you complete work, setting expectations by clearly stating the payment terms. Why not add that personal touch and try calling a few of your larger customers to make sure they pay within terms before they head off on holidays.
2. Have a plan for your employees
If you don't need all of your staff over the holidays then tell them to take annual leave - they probably want a holiday anyway. If they have leave owing this won't assist your cash flow it the short term but it will assist in the long term as they won't take holidays during your busiest periods. You will also need to schedule the wages and salaries to be paid while you are on leave.
3. Make a list of the administrative tasks that need to be done
If you decide that you need some staff working over the holiday period then make sure you put them to work! Don't let them take a paid holiday hanging around not being productive. Make a list of the tasks that you never seem to get around to and tick them off! Perhaps the filing system needs reorganising, or the CRM needs updating?
Founder & Director
Two Sides Accounting
02 9030 0269