Christmas cashflow planning for NZ business owners 🎄
If you’re a business owner, you’re probably looking forward to a well-earned break over Christmas and New Year.
A little planning now can make that break much easier to enjoy. At this time of year, cashflow is especially important. Along with the usual wages, rent and supplier bills, New Zealand businesses may also have GST, provisional tax and terminal tax payments coming up over the summer months.
Here’s a practical Christmas cashflow checklist: ✓ Send invoices promptly so customers have time to pay before the Christmas shutdown. Where appropriate, consider shorter payment terms rather than waiting until the 20th of the following month.
✓ Follow up overdue accounts and debtors now. The earlier you chase outstanding invoices, the better chance you have of receiving payment before businesses close for the holidays.
✓ Check your customers’ closing dates and final payment runs so you know when to expect money coming in.
✓ Prepare a cashflow forecast for December, January and the first few months of 2027, allowing for quieter trading periods.
✓ Allow for wages, holiday pay and leave paid in advance, particularly if your business closes over Christmas.
✓ Set aside funds for GST, provisional tax, terminal tax and other upcoming tax obligations.
✓ Plan for regular expenses such as rent, loan repayments, subscriptions and insurance that continue even while your business is closed.
✓ Review stock orders and large purchases so you’re not unnecessarily tying up cash before the break.
✓ Let customers know your Christmas closing dates and any final deadlines for orders, invoices or work.
Building a cashflow buffer before Christmas can help your business start 2027 in a much stronger position.
If you’re unsure whether your cash reserves will comfortably cover the Christmas break and upcoming tax payments, talk to the team at KGA Chartered Accountants in Warkworth.
We can help you look ahead and plan before the summer rush. Call us on 09 425 8536