As Christmas approaches, many businesses in New Zealand wind down to take a well earnt break. Whether you’re running a retail store, offering services, or managing a trades business, it’s important to plan ahead so everything goes as smoothly over the holiday period. As a bookkeeper, I’ve seen the value in getting everything well prepared and organised before you switch off for Christmas. Here are some tips to help you prepare your business for the holiday shutdown:
1. Wrap Up Your Financials Early
Start by ensuring all outstanding invoices are sent and payments are up-to-date. In New Zealand, some businesses experience slower cash flow during the summer break, so it’s important to check for any overdue amounts and address them before you close for the holidays. If needed, follow up with clients to confirm payment dates or adjust your cash flow projections for the quieter months ahead.
Tip: Offering a payment plan to clients struggling to pay overdue bills can be helpful in collecting outstanding amounts.
2. Plan Payroll and Employee Leave
Christmas holidays often coincide with employee leave, so it’s essential to process payroll in advance. Ensure that any bonuses or holiday pay entitlements are calculated correctly in line with New Zealand’s payroll laws. Set reminders to pay staff before you close so that everyone is paid on time, and there are no surprises when you return.
Tip: 1 September is a great time to review the leave report and discuss with employees ahead of time if they have not accumulated enough to cover the shut down period and a good time to remind staff that if they reduce their leave between then and Christmas.
3. Communicate Holiday Closure Dates
Let your clients and suppliers know about your closure dates well in advance. For some businesses, like hospitality or retail, December can be a busy time, so it’s crucial to manage expectations and communicate any changes in hours or service availability. Some great ways to communicate opening hours are face book and Instagram posts, and sending an email to clients and suppliers
4. Set Up Automated Systems
Use accounting software to automate recurring tasks like invoicing, bank reconciliations rules, and bill payments setups in the bank as a automatic payment. This will save you time and prevent any hiccups while you’re away, allowing you to enjoy a stress-free holiday break.
5. Prepare for the New Year
Lastly, take some time to assess your goals for the upcoming year. Set yourself up for success by reviewing your financial goals, tax obligations, and upcoming projects. That way, you can hit the ground running when you return from your break.
With a little planning, you’ll not only ensure a smooth Christmas close but also be ready to start the New Year strong!