Christmas Budgeting tools and tips.
How to do a Xmas Budget
I love what I do, its often like an adrenaline rush, but then sometimes its like I get kicked in the guts when I have to put my finance hat on and take a real look at my cashflow forecast. Xmas is when we have to really be realistic of the bills we have to pay and often that takes a bit of planning ahead.
Your Xmas cashflow budget is based on a short period over Xmas, we suggest when making this budget you only put in figures that you know are going to happen, this helps be able to move figures around so we can make everything work. We can use an Excel/google sheets spreadsheet showing the period from 1 December to 28 February (3 Months) (follow link to download), Or another option that I use for my business is an online program called Pocketsmith. We use this program all year round, not only over the Xmas period, it shows a day by day cashflow so we can keep track or our daily, monthly or annual cash.
Information you will need to complete a Xmas budget
Step 1: Sales – A list of what income you expect over the Xmas period, either each week or monthly depending on the type of business or debtors you have. (We recommend being pessimistic, only put in definite income)
Step 2: Funds Introduced – If you expect you will need to add any funds.
Step 3: Tax refunds due – Provisional Tax from last year and GST refund.
Step 1: List all your automatic payments, direct debits or other regular payments that will be due for payment. Some examples or common regular payments are: wages, drawings, car payments, rent, bank fees, insurance, subscriptions, phones and hire purchases.
Step 2: List of taxes – GST, Provisional Tax, PAYE, FBT
Step 3: Realistic estimate of what your creditors will be for 20th December, January and February
Step 4: Balance of other accounts such as Tax and/or Savings