Christmas might be magical… but Santa is basically running the busiest small business on Earth. At Hills Accountants in Hobart, we understand exactly what he is going through, and we can pass that knowledge on to every small business owner who feels that their small business has Santa’s Workshop beat!
Santa has one REALLY hectic month, one production line, an overworked distribution system, and customers who are absolutely guaranteed delivery on time.
And buried under all those toy trains and miniature drum kits are a few surprisingly practical cashflow lessons small businesses can borrow — with the exception of the flying livestock. Let’s dive in…
1. Seasonal cashflow needs planning, not guesswork
Santa has one huge job every December, but all the groundwork starts months earlier. Toys don’t magically whip themselves together (no matter how cheery the elves claim to be).
Likewise, your small businesses will feel the December crunch long before the first secret Santa gift is wrapped. Stock costs, staff leave loading, customer slowdowns — it’s predictable, but only if you plan for it.
A simple cashflow forecast (even a basic spreadsheet) can stop that awful “Where did my money go?” moment in mid-January. The ATO’s free cashflow guide is a handy starting point: https://business.gov.au/finance/cash-flow/cash-flow-management
2. Santa budgets for labour — you should too
Elves don’t work for candy canes alone. They need rostering, breaks, tools, and someone to explain why the toy drum line keeps going missing.
Small business owners often forget the “real cost” of labour:
- super
- leave
- insurance
- downtime
- replacement staff
When December arrives, missing this piece can hit you harder than stepping on a Lego piece in bare feet.
3. Inventory is money trapped in a shelf
Santa has huge inventory turnover — everything leaves the warehouse in one night. If only all businesses were that lucky.
A Tasmanian retailer sitting on shelves of stock in January is looking at:
- storage costs
- discounted sales
- reduced cashflow for new orders
- wrinkled brows
A quick pre-Christmas stock take helps business owners make smarter decisions in early December, not mid-February when the damage is already done.
4. Santa reviews his systems every year
The sleigh gets tuned. The list gets checked (twice — overachiever). The workshop layout gets updated.
Your accounting system deserves the same love once a year. Whether you’re on MYOB, Xero, or a shoebox of receipts (oh dear), December is a perfect time to clean up.
Final thought
Santa’s success isn’t magic. It’s planning, reviewing, budgeting, and staying on top of the money coming in and out. Hills Accountants in Hobart can help keep your business flying — no reindeer licence required.
Of course, 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.