Keep Calm and Plan for Cash Flow This Holiday Season!!!

Have yourself a profitable little Christmas!


The holidays are the busiest time of year for many small businesses. With revenues increasing, it’s easy to get swept up in the sales momentum. But smart business owners know they need to proactively manage cash flow to avoid getting blindsided by cash crunches.

When sales ramp up for the holidays, the extra income isn’t necessarily automatic extra profit. You need working capital to bridge the gap between increased expenses and collecting payments down the road. Here are some strategies to make sure your cash flow stays healthy this holiday season:

Plan for Inventory Expenses Upfront

Ordering extra inventory is essential to meet higher holiday demand. But those growing inventory costs can tap out your cash reserves fast. Create a purchasing plan now before the rush hits. Look at sales records from prior years to forecast how much inventory you need. Check with suppliers on lead times so you can place orders early. And consider negotiating volume discounts or payment terms for large orders to ease the cash flow impact.

Use Credit Strategies Wisely

Lines of credit and credit cards can help cover short-term cash needs. Make sure you have access to adequate credit limits to handle the seasonal rise in expenses. Be disciplined about paying down balances quickly so interest costs don’t eat up your profit margin. Weigh the benefits of retail credit cards for your customers – they increase purchasing power but also reduce your payment speed.

Invoice Quickly and Follow Up

Don’t let invoices languish during your busiest season. Set goals for invoicing quickly after every sale. Follow up on unpaid invoices so you can collect before holiday slowdowns at customers’ AP departments. Consider offering payment plans or discounts for early payment if cash flow is extra tight. Just make sure discounts provide enough incentive to justify the reduction in revenue.

Learn more about TSAT’s Cash Flow Optimizations!

Keep Tabs on Receivables

Keep a close eye on accounts receivable reports so you know who owes you what at all times. Reach out to significantly past due customers to determine if there are issues that need resolution before payment can be made. Consider limiting credit or payment terms moving forward for habitual late payers.

Adjust Staffing Budgets

Hiring seasonal staff or contractors can be crucial to meet holiday demand. But also budget for higher payroll expenses, overtime, and increased taxes and workers comp premiums. Make sure to account for training and onboarding time as well. Consider staggered seasonal staffing that better matches projected sales peaks and valleys to control labor costs.

The holiday season often makes or breaks the year for small businesses. Avoid the stress of cash flow surprises by planning ahead and making strategic moves to maintain healthy finances. Reach out to your accounting advisor for help assessing your specific cash flow needs this holiday season.

5 trends potentially affecting Cash Flow Optimization


Treat Yourself to a Free Consultation!

The holiday season often makes or breaks the year for small businesses. Avoid the stress of cash flow surprises by planning ahead and making strategic moves to maintain healthy finances. Cash flow management should be an integral part of your preparation for increased holiday sales and expenses.

As your TRUSTED advisor, we want to help assess your specific cash flow needs and put proactive plans into place. We can run cash flow projections, optimize lines of credit, review inventory and staffing budgets, and implement best practices for invoicing and collections. Now is the time to get ready so you can fully capitalize on holiday revenue without losing profits to cash crunches.

Contact us today to schedule a FREE consultation. We’ll help you enter the holiday season with confidence, knowing your cash flow is under control. With customized guidance you can enjoy your most profitable holiday season ever, without financial headaches. Take control of cash flow today!

Make better decisions for your company! 💡

Your Trusted Advisor… At TSAT, we understand that exceptional small businesses must maintain high standards in service, accuracy, reliability, and efficiency. To achieve these goals, it is essential to establish a thorough set of accounting and finance policies and procedures and consistently train all personnel involved. By letting TSAT focus on you accounting, quality assurance, finances, and provide you with a small business accounting department, you can expand your core competency operations and enhance your profit margins. Ensuring every aspect of small business accounting operates at peak performance requires some effort, and we are here to assist you on this journey!

Here at TSAT, we are not simply bookkeepers. We work with you to provide a 360-degree strategic financial advice, including small business operations and investment guidance. We will help you stay ahead of the curve when it small business or personal investments!

If you are a gig worker or small business owner looking to grow your business, TSAT’s AMAZING Trusted team considers much more than just your taxes!


TSAT’s is your Trusted Advisor and will let you focus on your business’s core competencies! Whether you have a small business or you need help personally, TSAT can give you HOPE! Call us today! 

Phone: (417) 208-2858