Home topics finance advice Credit: Kelly Sikkema Advice Advice Holiday cash flow hacks: 10 ways to keep the money rolling Ryan Jones December 14, 2023 The holiday season can be a double-edged sword for SMEs: you need to take time to celebrate the year that was, while having to juggle unpaid invoices and stagnating cash flow. CreditorWatch research shows that Australian businesses, on average, will experience a 20% drop in revenue in February following the holiday period slowdown. If you’re starting to feel the pinch, you’re not alone, with CreditorWatch’s Business Risk Index indicating that it will be a tough Christmas across many industries. Thankfully, there are a range of pre-emptive measures businesses can take today to put them in a more competitive position and keep cash flow smooth over the festive season. Strategic budgeting Before the holiday season really kicks in, the first step to ensuring smooth cash flow is to revisit your budget. Identify areas where you can afford to spend more, such as seasonal promotions to clear out stock, and areas where you can afford to pull back, such as an all-expenses office Christmas party. Through strategic budgeting and better allocation of resources, businesses can better protect their cash flow. Proactively manage invoices You can’t let outstanding invoices linger. Timely communication can help to ensure your cash flow remains uninterrupted. Otherwise, you risk waiting until mid- to late-January (at the earliest) for invoice payment. Take a proactive approach to follow up on any pending payments before your