With Christmas around the corner, closing off finances for December is essential to ensure a smooth start to 2021.
Slow paying customers over the Christmas & New Year break can put a severe strain on cash flow, causing stress during a time which should be spent relaxing with family and friends. Many debtors will close off their invoice payments early or push out payment by a month, creating huge cash flow worries going into the break. Compounding this is the reduction in chargeable work with the break, but you still need to pay wages to employees on their annual leave.
Here are our top tips to get organised for the break
- Get invoicing done as early as possible.
- Make sure you know when the final cut off dates for invoice submissions are.
- For larger or critical invoices, ring your debtor and check when the invoice will be paid.
- Understand when payments are coming in and when large expenses are going out to make sure you are not going to be caught short.
- Create a simple cash flow forecast using your accounting software to identify any cash flow holes. Your accountant can help with this.
If you need funds over the break, FundTap’s invoice financing solution can solve cash flow worries and allow business owners to relax over a well-earned break from 2020!
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