Have you got a strategy for a financially stress-free holiday period?
We in the Albert O’Connor & Co Accountants office know that summer breaks are a chance to recharge for the year ahead, especially after the year we have had. We look forward to warmer weather and finally setting up an out-of-office email for the break. However, for business owners, this time is stressful without careful cash-flow planning.
Even if you do continue to operate through the holiday season, your customers’ financial behaviour may not remain the same. Here are some tips from the Albert O’Connor & Co Accountants team to help you have a stress-free summer break:
- 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.
- 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 the summer holidays, whether it’s the kitchen benchtop installed or the beauty treatment before the break, so make sure you have the capacity to maximise on this.
- Stock-take – Do you need to order goods now to be able to complete work in progress? Check that there is stock on hand available.
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