Business management for Christmas 2014 and the holiday period
Christmas can present some real challenges for small businesses. At this time of year it is not uncommon to find some debtors postponing payments until the New Year. To avoid this, it is essential to place a strong focus on debtor collection before Christmas to ensure there is cash flow for January and February.
Christmas is also a good time to review employee leave entitlements. Small businesses need to be firm about minimising accrued employee leave liability entitlements. While small businesses tend to be more willing to accommodate staff requirements they can become a significant liability and a future cost. As such, it is best to deal with leave on an ongoing basis. It is also important that businesses inform employees of when it is suitable to take leave – whether it be Christmas, Easter or another time specific to the business.
Stock management is also critical at this time of year. Some retail businesses may have a clear focus on minimising retail stock holdings by Christmas Eve. In other instances, businesses may be best to stock up in December so they can recommence production in January rather than waiting for stock deliveries on their return.
In the lead up to Christmas and the holiday period ensure that your business affairs are in order.