Focus on your cashflow in the lead up to the festive season

Sales:

• Invoice Early: To ensure you don't miss your customers' payment processing runs and timely payments, consider invoicing earlier in December.
• Debt Collection: Focus on collecting outstanding debts before your customers' offices close for the holidays.
• Prioritise Short Sales Cycles: Boost cashflow in the short term by closing any outstanding sales orders and emphasising sales with shorter sales cycles rather than complex transactions.
• Inventory Management: Concentrate on sales that allow you to reduce inventory, particularly fast-moving items.
• Work in Progress: Invoice for any outstanding work in progress.
• Deal with Slow-Moving Stock: If you have old or slow-moving stock that hasn't sold, consider selling it at a loss to convert it into cash.

Staffing:

• Staff Review: Assess your staffing levels to ensure you have adequate coverage during the holiday season.
• Encourage Leave: Encourage employees to take leave if it aligns with your business's operational needs.
• Evaluate Staff Composition: Examine the ratio of casual staff to permanent employees and adjust as necessary.
• Overtime Management: Review and control overtime levels to prevent unnecessary expenses.

Expenses:

• Discretionary Expenditure: Scrutinise all discretionary expenses, such as training and travel, and cut back where possible.
• Hire Equipment: If you have hired equipment that won't be needed during the holidays, return it to reduce costs.

Funding:

• Cashflow Forecast: Prepare weekly cashflow forecasts for December, January, and February to identify potential funding shortfalls.
• Supplier Relations: If needed, consider renegotiating terms with key suppliers, contacting the tax office to discuss any tax-related matters, or exploring additional funding options through your bank.
  

If you require assistance with implementing any of these strategies, please don't hesitate to contact our office. The festive season can be a challenging but also rewarding time for businesses, and careful planning and execution can provide avenues for success.

Disclaimer

The information provided in this article does not constitute advice. The information is of a general nature only and does not take into account your individual financial situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.