Have a stress-free Christmas with these top tips to wrap up the year

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 cashflow, 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 cashflow 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 cashflow forecast using your accounting software to identify any cashflow holes. Your accountant can help with this.

If you need funds over the break, FundTap’s invoice financing solution can solve cashflow worries and allow business owners to relax over a well-earned break from 2020!

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