Running a business is tough at the best of times. Throw in the fact that Christmas (and the usual business / office closure) is now only a few short weeks away, now is the right time to finish off 2019 on the right note and prepare well for the start of 2020!
I have come up with a few simple tips to navigate the end of 2019 so 2020 can start with a bang:
Get operations and the cash flow in order
This time of year, with Christmas parties and client drinks, staff on leave and the office closed for at least some of late December (and more likely a few weeks), it is critical that the cash flow (and the information that feeds it) are reviewed for accuracy and the realities of the festive season and shutting down for a few weeks.
Sales and productivity will inevitably take a hit and expenditure will probably be up too, so December and early January can be a bit of a flat time for most businesses (unless you sell Christmas trees that is…).
So prepare early for those circumstances:
- Prioritise the completion of work where you know critical personnel have leave booked
- Raise some invoices and get some more funds into the bank
- Even consider offering some early payment discounts to clients
- Get a firm handle on the payroll situation over the festive season when the business might be closed and pre-process and automate the wages payments
Pre-empt the tax issues
- Set aside funds for the December quarter superannuation – the 28th of January will arrive quicker than most expect
- Don’t be tricked into the false sense of security created by the December BAS lodgement extension – the March quarter BAS deadline will arrive very swiftly, so make sure that cash flow accounts for the bumpy BAS ride
Gear up for January 2020 now
- Use the lulls and periods of downtime in December and over the break to make sure the troops all have something productive to do when they come back from leave
- Use any spare time to get some maintenance and cleaning done
- Spend the break (if you get one) thinking, and I mean REALLY thinking about your goals and objectives for 2020 – you’ll be back at work before you know it and will become too busy to work on the business
About the author
Greg Quin is a Director at HLB Mann Judd Insolvency WA and has been with the team for 10 years. Greg oversees the daily operations of the many insolvency appointments managed by the HLB Insolvency team and looks after the operations of the practice.
If you have any queries about insolvency matters, please feel free to contact Greg on 08 9215 7900, 0402 943 091 or via email to firstname.lastname@example.org.