Maintaining your cash flow over Christmas
As 2023 draws to a close, businesses throughout the UK are busily preparing for the Christmas slow down (or shut down). With many businesses opting to close their doors it is vital that companies have all aspects of their operations in place to ensure they are able to recommence work seamlessly come January.
The team here at Ellis & Co have spent the last few weeks helping our clients prepare for the festive period, providing advice, guidance and, of course, accountancy services to ensure that cash flow is maintained during the Christmas period. So what can your business do to ensure your cash flow starts 2024 in the best possible position? We take a look below…
Preparation is crucial in the lead up to the Christmas and New Year period. Often this will mean moving tasks forward that may have otherwise been done at the end of the month, such as monthly invoicing. In bringing these forward, you can ensure that you aren’t sending invoices late, as well as avoiding a January rush to send these late invoices and thereby boost your chances of being paid prior to your client’s closing their doors until 2024.
Communicate with clients in advance
Of course, sending invoices earlier in the month won’t necessarily mean they will be paid early, but in being proactive and politely requesting earlier payment you will save yourself a lot of time when you return in January. We do recommend having a plan in place during those first couple of weeks for chasing payment of any outstanding November or December invoices.
Tracking your cash flow is vital all year round, but never more so than during the Christmas period. Your accounting software (alongside your accountants) will be able to provide you with a forecast of your cash flow so that you can enter 2024 with a clear picture of your business’ financial standing as well as areas to focus on in the New Year to boost cash flow.
Enjoy the well-deserved break
For both the team at Ellis and our clients, it goes without saying that we have all worked extremely hard throughout the past 12 months, and therefore taking time out to relax and recharge during the festive period will only benefit the business come January as your workforce will be ready to hit the ground running.
On behalf of everyone here at Ellis & Co, we would like to wish you a very Merry Christmas and a happy New Year. We look forward to working with you once again in 2024.