As discussed in Part 1, running a business can be tough so make sure you are doing all that you can to remove stress by managing your cash flow. That way you know what you have available to spend, you have money aside for bills, and you can relax and enjoy Christmas with family and friends.
Our final three tips to survive the silly season:
Don't spend your invoices
Some businesses are incredibly busy in the lead up to Christmas and find they have a whole lot of cash in their bank accounts. So they buy new equipment and buy presents for suppliers all the while forgetting invoices that need to be paid for. Make sure bills are accounted for and entered into your accounting system so you can budget effectively and efficiently.
Ask for help
The last thing that you should do is put your head in the sand and pretend debts will go away. Creditors will be much happier knowing that you intend on doing something about their debts than they will if you ignore them. So if you haven't already, prepare your budget now, start putting money aside (it’s never too late). And if the size of the hole you’re in feels frightening, talk to an accountant or business broker about what you can change. The most important thing is that you ask for help sooner rather than later.
Think long term
Dealing with short-term cash-flow issues are important but it's just as important to consider your long-term strategy. The new year is a great time to revisit your business plans and budgets (or create them if you don't have one.) When you do, you might consider things like asking for 50 per cent upfront, shortening payment terms, or offering incentives for early payment. It’ll make your life easier in the future.
We work with the owners of Perth businesses and hep with business cash flow for beauticians, builders, plumbers, painters, lawyers, locksmiths and more.
If you need help or would simply like to know your options then contact us on (08) 6200 0269 or firstname.lastname@example.org for some more friendly advice.