During the holiday break, business owners should take some time to reflect on their annual cashflow fluctuations and the past year in general, to try to understand what has worked and identify areas that need improvement.
With this in mind solid sales plans can be made for the next 12 months.
The aim is to manage seasonal fluctuations, and maintain positive cash flows throughout the year. Once businesses have clearly identified their yearly peaks and lows they can create a seasonal management plan with the following considerations:
Managing seasonal demand
For businesses that have a peak period, managing inventory becomes a demanding and time-consuming task. Without careful planning, inventory can get out of line, resulting in heavy markdowns due to overstocks and serious cash flow problems.
Hours and staffing levels
Determine the need for seasonal staff. Work with staff to stagger schedules so that the business is fully operational during peak periods. This may involve more night work.
Review last year’s records
Make allowances and adjustments for unusual events, such as weather and one off promotions. Based on current market share, make profit estimations taking into account the busiest and slowest periods.
Call (02) 4926 2300 or email the team at Leenane Templeton.
To discuss annual cashflow fluctuations in more detail with our specialist accountants make sure you give us a call.