It’s beginning to look a lot like Christmas… which means small business planning in the area of cash flow is quietly putting on a hi-vis vest and waving a warning flag.
At Hills Accounting, we know that December is a wonderful time for fun, family, food, and terrible jumpers — but financially? It can be a minefield.
Here’s why small businesses feel the burn.
1. You pay out more money than usual
Christmas means:
- annual leave loading
- staff parties
- client gifts
- stock buying
- overtime
- extra utilities
- increased supplier costs
Cash goes out… fast.
2. But less money comes in
Customers are often distracted, travelling, or simply broke.
- Invoices get paid late.
- Suppliers close early.
- Tradies stop taking jobs.
- Retail goes hot then ice-cold.
It’s the worst possible seesaw: more expenses, less income.
3. Staff holidays = fewer hands on deck
Even if you’re open, half your team is somewhere between the Spirit of Tasmania, a beach towel, and a glazed ham.
Which means slower output, reduced income, and more catch-up in January.
4. January is a slow recovery month
A lot of businesses experience:
- low sales
- fewer enquiries
- slow cash intake
- big bills arriving
- BAS season preparation
Cue the sweating.
How to protect your cashflow now
✔ Send invoices early
Don’t wait until 22 December. People won’t see them.
✔ Collect outstanding payments before everyone disappears
Just one overdue invoice can throw out January.
✔ Delay non-essential spending until mid-January
Your cashflow will thank you.
✔ Prepare a small cash buffer
Even $500–$1,000 can soften the landing.
✔ Forecast December–January
The ATO has a handy cashflow kit: Click Here To See More
Final thought
Christmas isn’t “dangerous” — it just hits all at once. With a little forward thinking, your business can stay steady without feeling like you’re hanging onto the sleigh by one rein.
Hills Accounting is here to help you set up a cashflow plan before the rush hits.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.
Talk to Kathy and the team today and stay ahead with Hills Insights.
Call Now! 03 6273 7800, or email admin@hillsaccounting.com.au.