The Christmas season is one of the busiest and most important times of the year for business owners. For some, it means record sales and long trading hours; for others, it means closing the doors for a well-deserved break. Either way, the lead-up to Christmas brings unique financial and operational challenges.
If you’re not prepared, it’s easy to feel the pressure of juggling cash flow, payroll, stock, compliance, and staff expectations all at once. But with the right planning, you can head into the holiday season with confidence, knowing your business is in good shape and the new year won’t start with financial stress.
- Cash Flow
The festive season can stretch cash flow to its limits. Between BAS and PAYG in November, staff wages and leave in December, and potentially reduced income if your business shuts down, money can tighten quickly.
The best strategy is to build a forward-looking cash flow forecast. Map out your income and expenses from November through February. Include extra costs like staff bonuses, holiday parties, and client gifts. If revenue dips, consider delaying major purchases and trimming non-essential expenses.
Chase overdue invoices early, and if needed, negotiate flexible payment terms with suppliers. A few proactive conversations now can make a big difference.
- Plan Payroll and Staff Leave Early
Payroll mistakes or unclear leave policies can derail even the best-laid plans. December often involves complex rosters, bonus payments, and penalty rates—so get organised early.
Confirm leave requests and communicate roster expectations. If payroll coincides with a public holiday, notify your team about any early payments. For businesses staying open, clarify who’s working and who’s covering shifts. Process bonuses well ahead of time to avoid clashes with year-end obligations.
Also, check that pay rates, leave loading, and entitlements align with awards or agreements to avoid compliance issues.
- Stocktake and Supplier Management
For some industries, December is the busiest time; for others, it’s the quietest. Align your stock and supplier plans accordingly.
Conduct a stocktake to identify what’s moving and what’s not. If December is your peak period, order early and factor in supplier closures. If business slows, avoid overstocking to preserve cash. Running a clearance or holiday promotion can help move old stock and boost cash reserves.
Keep suppliers in the loop about your trading hours and ask for theirs to avoid missed deliveries or service disruptions.
- Compliance
Tax and super obligations don’t pause for the holidays. Missing a January or February deadline can disrupt your momentum going into the new year.
Check that all BAS, PAYG, and superannuation lodgements are up to date before you close. Ensure your Single Touch Payroll is current and clarify any early January deadlines with your accountant.
Now is also a good time to consider some proactive tax planning—such as prepaying expenses, making additional super contributions, or reviewing your business structure—before 2026 begins.
- Christmas Parties and Staff Gifts
Celebrating your team’s hard work is a great tradition, but without a plan, the costs can add up quickly.
Set a realistic budget for parties, gifts, and client thank-yous—and stick to it. Small, thoughtful gestures can be just as meaningful as expensive gifts. Also, ensure these expenses are correctly recorded in your books, as not all will be tax-deductible.
- Protect Your Business While You’re Away
A closed business or empty premises can be vulnerable during the holidays. In addition to physical security, be mindful that cybercrime often increases over the break.
Check your insurance coverage—including business interruption, cyber insurance, and public liability. Back up critical data, update passwords, and enable multi-factor authentication. If shutting down for the holidays, turn off non-essential utilities and double-check security measures.
Conclusion
The holiday season brings both opportunities and challenges—but with thoughtful planning, you can make the most of the festive period while setting your business up for a smooth start to 2026. From managing cash flow and compliance to caring for your team and securing your operations, the steps you take now will pay off in peace of mind and stronger performance in the new year.
Start early, stay organised, and remember: a well-prepared business is one that can truly enjoy the holidays.
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