The holidays constitute a very critical period in the holiday year, that can pose to be difficult for small businesses. Decisions taken in this period can be very instrumental in the life of the business, making or marring it. This makes it imperative that bookkeepers must be on the alert to prepare the business owner for this period and by extension, make inputs that will be beneficial to the business. Keeping the business afloat during this trying period is the goal and the services of bookkeepers at this moment cannot be underestimated.
AVOID BEING TAKEN UNAWARES
A popular English adage says ” failing to plan, is planning to fail”, this is the case most times for many businesses. The holiday period may either be a hectic one or a time to relax for small businesses, depending on the services they render. Also, the holidays represent the end of the financial year with many businesses wanting to balance their financial records at this time, this may prove to be fatal. It is advisable therefore, for bookkeepers to balance their financial books early and avoid the holiday sting. This act can prove to be profitable for the business as they strategize for the next year. In businesses with a very hectic holiday, this planning cannot run concurrent with other activities.
GATHER THE BUCKS SOONER
It is wise that before the year winds up and the the holiday sets in, you must have moved around to pick up the bucks that are still being owed by debtors. Usually this may look daunting for business owners who may not want to stir the hornets, but check out the many ways these uncollected funds may affect the business during the cash crunch holiday period and slow begginings of the new year.. It is advisable to settle unresolved invoices on time , so that plans could be made beforehand and the bookkeeper is enabled to make final touches to the financial books before the holiday rave sets in. Read more.
CREATE A BUDGET
It is important that businesses that will suffer low patronage during the holidays, create a budget for their expenditure within this period. Working together with the bookkeeper, they can prepare a budget that will checkmate their spending during this period . This is necessary to cut costs during this period when sales will be on an all time low. This cost cutting decisions will take into consideration rent, payroll, accounts payable, and any other expenses that your business will incur. Now that you have an idea of your expenses, how does it compare to your current / expected cash flow?. This projection of cashflow will determine what steps to tale in cutting cost. For example, you may be paying for services that are not utilized during the holiday season. The best option for the life of the business is, to cancel the subscription and wait for the new year.
The decisions of the holiday period can either make the business stronger or mar it’s prospects. Bookkeeping , a veritable tool in business growth can come in very handy in surviving the trying holiday period. If you need a bookkeeper to keep you afloat through this times, to be there to close your books for the year and give you mind blowing budget tips, think bookkeeper Melbourne or visit bookkeeperco.com.au.