Depending on the nature of your business, the Christmas period either signals the start of a flurry of last-minute activity or the start of slow down as businesses prepare to close at year end. It’s a time when expenditure is on the increase with year-end functions, Christmas parties, staff bonuses and corporate gifts to valued clients. Forward-thinking business owners should plan for this festive period to ensure there are no repercussions on your cash flow in this time. Use these tips to help you prepare your business for the Christmas period and avoid bookkeeping blues.
An essential precursor to success is planning, and this holds true for having a good Christmas period. Plan in advance for the costs associated with this time of the year by having an accurately drawn up cash flow statement. A business management consultant or accounting firm providing bookkeeping services can give you with a good idea of money coming in and going out to enable you to draw up a projected Christmas period budget.
Get those invoices sent out in a timely manner
Consider sending out invoices the moment jobs are completed to ensure money comes in sooner. There is also less of a risk of you forgetting to send it through to your client once the period starts getting busy.
Leverage festive season marketing
The Christmas period is an opportune time to ramp up your marketing efforts with fitting marketing promotions. Think about introducing holiday-themed offers and events to get your brand noticed ahead of the competition and more sales.
Keep track of possible tax deductions on expenses
With the year coming to a close, you may be tempted to splash the cash with Christmas celebrations. Before you go too hard, make sure you speak to your accountant or bookkeeper. They should be able to tell you if expenses such as the office Christmas party, client gifts and staff bonuses are tax deductible.
Enjoy a more relaxed Christmas season with a little forward planning and start the new year on a firm financial foot. For more timely and practical business management advice, speak to one of our trusted advisors at Stones Sharp today.