Servicing Newcastle, Lake Macquarie, Maitland & The Hunter Valley

Holiday Cashflow Planning for Small Business

This time of year can be hard on small business. Make a plan early to ensure healthy cashflow over the holidays.

When you’re not in the office, there are still overheads and salaries that need to be sorted.

If taking time off means that less cash will be coming in, it’s essential to plan for this period to make sure that these costs can be comfortably covered. Make sure you have a clear picture of your payroll, and any other planned expenses that will need to be accounted for.

If there’s even a possibility that there could be a shortfall, it’s essential to meet this head-on. Whether this means talking to your supplier or creditors to figure out an arrangement, or compromising on other business outgoings, you must make a plan to ensure that the business and your staff are not impacted. 

When you’re planning a holiday closure, book an appointment with Newcastle Bookkeeping experts Balanced Beans. We can help you navigate the holiday period and alleviate cashflow worries so you get a well deserved break.

Tips to minimise the stress of cash-flow over the Christmas shutdown period

  • Invoice early – issue all eligible invoices and in advance if possible. If you have  regular clients or customers you could offer a retainer or a deal if they book services or make a purchase from you in advance.
  • Chase payment – use this opportunity to chase up any outstanding invoices. Strong communication and relationships matter.
  • Talk to suppliers – a little honesty can go a long way. Perhaps they can extend a line of credit for your payments to them. In most cases, a good supplier would rather offer a little flexibility to keep an ongoing business relationship.
  • Review your expenses – it’s always a good idea to do a regular review of expenses. Business costs can creep up, and you might be able to make savings by pausing or cutting regular payments and subscriptions and upcoming expenses.
  • Talk to your bank or the ATO – if cashflow is tight, make sure you have conversations early so you have everything in place to see you through.

Have you got a strategy for a financially stress-free holiday period?

We all look forward to a break from work, warmer weather and finally setting up an out-of-office email!

However, for business owners, this time can be stressful without careful cash-flow planning.

Even if your small business continues to operate through the holiday season, your customers’ financial behaviour may not remain the same.

Read on for some general tips and strategies that can help you get through the holiday period. 

For specific advice our small business bookkeeping and accounting experts can help you budget and prepare a cash-flow forecast, and our Virtual CEO can manage your financial operations while you are having a well-earned break. 

We can also assist you apply for short term finance to get you through.

Simple Small Business CashFlow Strategies for the Holiday Period

While your business is closed for the holidays your expenses don’t take a break!

Staff leave needs to be covered in addition to your normal fixed overheads like rent, creditors and tax compliance. If you are closing the doors for a bit, you won’t be driving revenue during this period and sales may take time to get started again in the new year.

This is why the budget and forecasting process is so important. It ensures you know your numbers and are prepared. 


  • Decide your holiday break dates – confirm these with staff, customers and suppliers.
  • Budget and plan for annual leave – you may need to factor in temp staff. Also decide if you are going to pay out leave in full at the beginning of the break or continue to pay as usual throughout the break.
  • Review your work in progress (WIP) – plan to complete jobs or services that can be invoiced and paid (remember if you don’t invoice and get paid before the break, you may not see the money for another month).
  • Capacity planning – there is often a rush to get everything done before summer holidays so make sure you have the capacity to maximise on this.
  • Stocktake – Do you need to order in goods now to be able to complete work in progress? Check that there is stock on hand available.
  • Make an arrangement with the Tax Office – its possible to get more time to pay or apply for an instalment arrangement. 

Talk to Brodie and Karen at Balanced beans – we can help.

Need Financial Support?

If you don’t think you will be able to make ends meet, now is the time to act. Please let us know if you need any help with cash-flow forecasting, budgeting or finance applications.