For many small businesses Christmas can be a tight time, cash flow wise, especially if they have a business close-down period (additional to the Statutory Holidays).
Client gifts and entertainment expenses can be high, also if you employ staff and pay them holiday pay for a close-down period, you have this expense at a time when your business is not producing or making sales. Other additional costs often include a staff function and or staff gifts.
It’s best to get everything tidied up before you close down e.g.
- Get information to your Accountant/ Tax Agent, and complete your GST Return, if applicable, for the Oct/Nov period (payment has to be made by 15th January).
- Ensure your Nov PAYE Return is into IRD and paid by 20th December.
- Get your December charge-out invoices completed and sent to your customers.
- Finally, don’t forget your Debtors. Chase up any outstanding amounts a s soon as possible (this is KEY to your cash flow). DON’T be too soft as Christmas, or just after, is a common time for businesses/people to go bust.