5 tips to help your business survive the seasonal stress as Christmas, and the associated seasonal problems, are real but with a little planning they can be overcome or at least minimised.
Tip 1: If you’re the sole director of a company make sure you have a limited Power of Attorney in place so somebody can make decisions for the company if for any reason you’re unable to or can’t be contacted. Choose a trusted friend or business professional.
Tip 2: Cash flow if always a problem over Christmas to accounts departments shutting or staff on holiday. Plan ahead and set up an account with an invoice factoring company now. For B2B invoicing invoice mid-December then factor the invoice, get paid within 24 hours then clients have up to 90 days to pay the invoice but you already have the money.
Tip 3: Accounts departments shut down over Christmas and some businesses instruct accounts payable to stop paying invoices mid-December to help their Christmas cash flow. Chase outstanding invoices hard during November to avoid getting caught in the December lock down.
Tip 4: Accounts payable – now is the time to look at what bills need to be paid up to and by end of January – don’t forget GST & Tax! Run a budget so you know exactly what you’re facing and then look at what you can’t pay. Most creditors are receptive if you contact them before falling overdue and give them a projected payment date – it shows that you have a plan and you’re not ignoring it.
Tip 5: Staff leave & contracts – now is the time for you to make sure you have staff wages & holiday pays right over this period. Review everything whilst there are still HR & Payroll people around to ask any curly questions, last thing you need is some staff questions/problems when there is nobody to ask! Some stiff penalties, not to mention upset staff, if you get it wrong.
Posted: Monday 18 November 2019