The lead up to Christmas can be pretty hectic for all types of businesses, particularly those in retail. Ensuring that your accounting is up to date and you have aspects such as cash flow under control is essential.
While it might not be the first thing on your mind as we head into winter, particularly as many small businesses will be focussing on marketing and seasonal offers in order to make the most of the holidays, a few simple steps are all it takes to help keep you on track. Here’s our quick guide:
Keep Your Books Up to Date
For many businesses, particularly smaller ones, bookkeeping can be a fairly hit and miss affair. Finding time to do all that paperwork can be challenging. That’s why the period after Christmas can be so hectic for accountants as everyone tries to get their tax return in on time.
Maintaining accurate books and making use of tools like accounting software not only keep you up to date from minute to minute, but help you manage difficult times because you know exactly where you stand.
Understand Your Cash Flow
There’s no more important time for a strong cash flow than Christmas when all sorts of issues might arise. You may have to find extra stock, employ extra people or need cash when your creditors aren’t paying up because they’ve got their own problems.
Most seasonal businesses gather reserves during the off-periods and build up capital that protects their cash flow. If you do business all year round, however, this can be difficult to manage.
Having a strategic plan in place and making the most of the tools available is vital to ensure you don’t go short at busy and profitable times for your business. Working with a qualified accountant who can help in this area is essential, especially if you often find yourself working within tight budgetary margins. Get in touch with the professional team at Neil Smith Accountancy to discuss your business needs, and ideas to stay profitable if you struggle with cash flow.
Know Your Stock
The last thing you want at Christmas is to run out of stock. Sales and inventory planning is important all year round but even more so if you have a big season approaching over the winter. Understanding your stock availability, what the uptake is likely to be and how your cash reserves are holding up if you need to replace anything all ensure that you maintain viability through the yuletide season.
Understand Your Workforce Needs
You may need to take on extra workers over the Christmas period as well as keep your existing workforce happy. That means having a clear idea of what you can afford and what’s going to put pressure on your business.
You also have to take into account when people are going to take holidays and who is going to replace them. Again, having a deeper understanding of your financial status can make a big difference in making these kinds of decisions.
Why an Accountant Can Help Your Business at Christmas and Beyond
Your accountant isn’t just there to help you do the books and pay your taxes. They can help you raise finance when you need it, work with you to discover options to make money available to grow your business and help you manage change.
Christmas is a make or break time for many businesses which is why being up to date with your accounting can be such a huge benefit. You understand what monies you have available, you’re managing your cash flow and you are able to cope with what the world and the Christmas rush has to throw at you.
If you are looking for a qualified accountant that is experienced at helping small businesses of all kinds through the Christmas period and beyond, contact Neil Smith Accountancy today.