As Auckland accountants, dealing with businesses every day, we are well aware that as business owners that we are getting closer and closer to Christmas, and the typical Christmas rush is just beginning.
As Accountants in Auckland we quite often get asked the following questions:
What will happen to your business over the holiday season?
Well one thing that we quite often see is a real cash flow shortage in January.
Why is this you may ask?Well as Accountants we can suggest that:
1 People who you invoice in December are not always going to pay as promptly in January.
2 PAYE will be due in January for Wages and Holiday Pay paid in December.
3 GST is due for most businesses on the 15th January.
4 Provisional Tax is also due for most businesses on the 15th January.
SO, we have two options to consider regarding the above.
a) Ostrich Mentality – Hope it all goes away
b) Plan you cash flow with your Auckland Accountant and start discussions with you bank if required, NOW.
Taking action now may not be comfortable, but the pain that can come from lack of cash-flow in January makes it OK.
If you need help with your accounting in this Christmas season, and ideas to reduce financial stress in the new year, then please contact us.
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