Small businesses in many industries are put under cash flow stress over Christmas and New Years as invoice payments slow down, many close their offices for a short break and wages and expenses still need to be paid.
Here are a few tips to avoid the cash flow crisis and keep cash flowing:
1. Invoice as soon as you can, don’t defer till just before Christmas or when you return from your break
2. Follow up payment based upon your payment terms. This could be as simple as setting up auto-reminders through your accounting software.
3. Make payment as easy as possible by providing multiple payment options and utilising online payment platforms
4. Don’t go on a spending spree over this time, keep expenses to essentials
Taking action now will help your business survive and relieve the stress so you can enjoy the season.