Last Updated on January 23, 2025 by
The holiday season is here, and it can be tempting to coast into December.
But here’s the thing: this quieter time of year can pack a sneaky punch to your cash flow if you’re unprepared.
And who wants to start January already scrambling to catch up?
At SBO Financial, we’ve seen it all — from holiday overspending to unexpected BAS blowouts. We get it: you want to enjoy the holidays without worrying about your books. That’s why we’ve put together these five financial moves to keep your business running smoothly while you soak up the festive vibes.
Ready to wrap up the year like a pro? Let’s dive in.
Move #1: Chase Your AR Debtors Before They Ghost You
We all know the drill: December rolls around, and suddenly, everyone’s “out of office.” Don’t let your unpaid invoices take a holiday, too.
Start chasing those Accounts Receivable debtors before your clients head off for their well-earned break. According to Xero’s 2023 Small Business Insights report, the average time for Australian small businesses to get paid is 23 days. Imagine how much longer it could be during the slowest time of year!
💡 Pro tip: Automate invoice reminders through your accounting software or pick up the phone for a friendly nudge. Your future January self will thank you.
Move #2: Have the Money Talk with Your Creditors
If cash flow is tighter than your jeans post-Christmas lunch, it’s time to open up a dialogue with your creditors.
Negotiating better terms now could make all the difference in keeping operations humming through January. Think: extended payment terms or even payment plans to spread the load. Most creditors are more open to discussions than you might think, especially if you approach them early and with a clear plan.
A simple call or email can go a long way toward keeping your business relationships solid — and showing you’re proactive about managing your obligations. Plus, taking the initiative now means you’re less likely to face those awkward “Why haven’t you paid us yet?” conversations when everyone’s back from their summer break.
Move #3: Skip the Pay Rise — Go for a Bonus Instead
If you’re feeling generous this season, consider giving your team a one-time bonus or thoughtful gifts.
Why choose a bonus over a permanent pay rise? Bonuses don’t lock you into higher payroll costs year-round, so they’re a smart way to say “thanks” without putting long-term strain on your finances. Plus, your employees will likely appreciate the extra cash to splurge on gifts and plans with their families.
Gifting is another fantastic way to show appreciation while keeping costs manageable. Think practical and personal: gift cards, curated hampers, or even an extra day off to relax can go a long way in boosting morale. Don’t forget to consider the potential Fringe Benefits Tax implications of gifting, and plan accordingly.
A well-thought-out gift shows you value your team without impacting payroll or triggering tax complexities.
Move #4: Don’t Let the December BAS Sneak Up on You
You’ve heard the phrase: “The only certainties in life are death and taxes.” Well, the December BAS deadline is one certainty that won’t care if you’re feeling festive.
Think of it like the Grinch of your year-end finances — unavoidable and with the potential to throw a wrench in your holiday cheer if you’re not prepared. If you haven’t budgeted for it yet, the GST bill can hit harder than Mariah Carey’s high notes (and probably with less joy).
Now’s the time to review your books and ensure you’ve set aside enough cash to cover it. Check your accounts for any unexpected GST liabilities or adjustments that could inflate your bill. If you’re already sweating, consider giving your accountant a ring to guide you through the process.
Planning ahead means fewer surprises and no nasty hits to your cash flow — so you can head into the new year with your finances intact and your festive spirit unscathed.
Move #5: Encourage Staff to Take Time Off
Team members sitting on huge annual leave balances? Now’s the perfect time to suggest taking a break if you don’t have an office closure planned.
For some industries, like eCommerce, December might be an unrealistic time to take extended time off. However, a predictable dip in January would allow for a smaller workforce to keep business ticking along.
It’s a win-win: your team gets some much-needed rest, and you reduce the liability sitting on your balance sheet. After all, overworked employees aren’t exactly productive, and burnout helps no one.
Keep the Festive Cheer (and Cash Flow) Flowing
The holiday season doesn’t have to be a financial headache. By chasing debtors, talking to creditors, and planning ahead, you can enjoy the festivities without losing sleep over cash flow.
Remember: the quieter season is the perfect time to tie up loose ends and prepare for a strong start in January.
At SBO Financial, we’re all about helping you make smarter decisions with your numbers. Whether it’s staying on top of AR, managing payroll, or budgeting for that pesky BAS, we’ve got your back.
🎄 Need help wrapping up your year? Reach out today, and let’s get your business sleighing into 2025!
