The festive season often brings a surge in shopping and preparations, fuelling market activity. Yet not all businesses experience a cash flow boost during this time. Staffing shortages, decrease in demand, and delayed payments can create significant challenges, forcing businesses to make tough decisions.
In Australia, December is a peak period for industries like retail, hospitality, and communications, while sectors such as manufacturing and education tend to slow down. If you’re looking for ways to maintain steady cash flow over the holidays, here are some tips.
Cash flow tips for the holiday season
Effective cash flow management is essential to keep your business running smoothly during the holidays. Use the strategies below to streamline your accounts and stay financially resilient.
- Invoice promptly: Send invoices promptly to the correct contact once goods or services are delivered.
- Negotiate payment terms: Align payment terms with your customers and suppliers to minimise payment delays.
- Flexible payment options: Make it easy for customers to pay by accepting cash, credit cards, and EFTPOS.
- Use E-invoicing: Save up to 70% on invoicing costs by adopting e-invoicing, as recommended by the Australian Tax Office (ATO).
- Pay on time: Ensure your own invoices are paid promptly to maintain a steady cash flow.
- Save for slow periods: For seasonal businesses, learn to keep enough funds to cover slower months.
How LBW can help support your business
At LBW Business + Wealth Advisors, we are dedicated to building strong relationships and partnerships. Our team of experienced accountants and wealth advisors bring the expertise, resources, and insights needed to help businesses overcome challenges and thrive. We work closely with you to ensure informed decision-making while keeping your business aligned with its goals.
Set your business up for success with our comprehensive advisory services:
- Business Tax Consulting
- Business Advisory Services
- Business Valuations
- Forensic Accounting
- Audit + Assurance
Secure your business financial future with LBW Business + Wealth Advisors
As one of Geelong’s largest locally owned public accounting firms, LBW Business + Wealth Advisors has been supporting businesses in our region for over 30 years. We’re committed to helping you and your business achieve your full potential by providing insightful financial advice and personalised support.
If you need assistance with securing the financial future of your business, contact LBW today at 📞 (03) 5221 6111.
This blog provides general educational information only. The content does not take into account your personal objectives, financial situation or needs. You should consider taking financial advice tailored to your personal circumstances.
LBW Business + Wealth Advisors is an Authorised Representative of LBW Wealth Pty Ltd ABN 56 652 382 128 AFSL 534569. Please see our website www.lbwca.com.au or call 03 5221 6111 for more information on our available services.
