November Blog: Getting Christmas Ready

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There is a lot of focus around money at this time of year and yes the time has come, its the Christmas period and we all need to stay on top of our Christmas Budget.


There are not many people or businesses that are not impacted by the Christmas period and in turn this has a big effect on our cashflow. It doesn’t matter if you celebrate Christmas or not there will be some sort of impact on your cashflow, for me I just want to put my blinkers on and pretend its business as usual and hope I get out the other side ideally with money in the bank, bills paid and staff happy.  But after a number of years in business I have learnt that planning my Christmas cashflow now (if not to late) we can make any necessary changes before we do get to the other side of the Christmas period with no funds.

What are big money killers at Christmas?

Sales

If you take time off and/or your business closes down for a period there will be an impact on your sales and if you are in Retail where you don’t close or not for long your clients may be closed or your sales peck before Xmas and quiet afterwards.  You should know your business to understand how the Christmas impacts on your Sales.


Debtors

Chase November invoices asap!! many businesses get to the December 20th, realise they don’t have quiet enough money to pay there staff holiday pay, pay taxes and pay creditors as well. These creditors are the first ones to miss out on being paid, be onto it early don’t leave chasing these payments until the week before Xmas. Keep in mind also, that by January 20th many clients are just getting back from the holiday break and will be low on cash so tend to push there creditor payments out further even further. 


Payroll

We all know how holiday pay works, it is money you should have set aside, as they say, ‘for a rainy day’. Well Xmas Holiday are that rainy day! If you don’t already know, find out from your staff who is going only holiday and for how long. Make sure your staff are aware how many days they have owing and what days they need to take off. Ensure they know exactly what to expect when their holiday pay come in. 


Tax

PAYE – for many of our clients we use an intermediary Payroll system, meaning all the PAYE is paid each time you do your payroll. This takes an enormous amount of pressure off trying to find PAYE on the 20th of each month.  For those owho still pay your PAYE on 20th Month you will have two payment to pay over the Xmas Period 20th Dec and 20th January make sure you allow for this over in your Xmas Forecast. 

Provisional Tax – There has been a change in how provisional tax is calculated and paid for 2018 year, check early with your Accountant or whom ever calculates your payment figure. This is payment is due 15 January 2018, ensure you are prepared through the Christmas season to make this payment. There is also going to be a new way to calculate provisional tax from 2018/2019 financial year we will cover this in a latter newsletter.

  • GST  – For those on two monthly GST your payment will be due January 15th  2018, the same day as your Provisional Tax.  Aim to have your October/November accounts ready early so you know what to budget for January 15th.
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