Cash Flow Tips for Businesses Ahead of the Festive Season
- bes Accountancy Services
- Sep 2
- 8 min read
The run up to Christmas and New Year can transform a good quarter into a great one, but only if your cash is working for you. In this practical guide we share cash flow tips for businesses that want to enter the festive period with confidence, not guesswork. Whether you run a construction firm, a busy restaurant, or a specialist service in London or across the UK, these steps will help you plan, fund, and protect your seasonal trading.
Do you want to save time and money for your small or medium-sized business?
Call our director Besnik today: 07816264205
Why cash flow matters even more before peak season
Demand spikes, supplier lead times stretch, and payroll often increases. A healthy bank balance today can be squeezed tomorrow by deposits, VAT due dates, and seasonal stock. For owner managers who want calm not chaos, the goal is simple, cash in faster, cash out slower, and forecast honestly.
“We tell clients to treat the festive period as a project with dates, budgets, and milestones. Cash is the critical path. Map it, then manage it.” Besnik Vata, director of bes accountancy, a London based accounting company
Want to dive deeper into accounting for businesses?
Read our related blog, where we provide a full guide to submitting your File Your Tax Return Early.
Practical cash flow tips for businesses right now
Build a weekly cash forecast for the next 12 to 16 weeks. List receivables, payables, payroll, VAT, rent, and any seasonal purchases. Update it every Friday. Use it as your single source of truth in team meetings.
Create a receivables action list. Segment debtors by amount and age, then call or email with a clear payment date. Offer card links and instant bank pay options. Consider small early settlement discounts if it unlocks overdue balances.
Sequence payments. Prioritise wages, key suppliers, and tax. Negotiate staged payments for large materials or festive stock. Ask for extended terms where you can demonstrate reliable trading.
Stress test. Model a ten percent sales dip and a ten percent cost rise. Decide your triggers in advance, for example pause a stock top up if bookings fall below a set line.
Forecast demand, then buy smart
Construction and fit out work often compresses into pre Christmas deadlines. Restaurants and cafes see spikes from office parties and family groups. Predict the profile for your business, then:
Place orders earlier to secure price and supply.
Use deposits and pre orders to finance stock.
Organise deliveries in phases so you are not sitting on slow moving items.
A London contractor might split timber and fixtures into two drops across November and early December. A boutique hotel can phase food and beverage orders based on confirmed bookings rather than speculative walk ins.
BES Accountancy uses tools like Xero and QuickBooks to help clients prepare property tax forecasts, file returns, and avoid costly surprises.
Strong credit control is your festive superpower
Send invoices the same day work completes or the morning after. Add clear payment links. Follow up at three, seven, and fourteen days with friendly reminders. Document every touchpoint. If a client will be away over Christmas, agree a plan now, not on 22 December.
“Polite persistence works. Short emails, clear amounts, and easy payment methods reduce debtor days and anxiety for everyone.”
-Senior Accounts Manager, BES Accountancy
If your team is stretched, consider bookkeeping services London and credit control support from BES. We keep your ledger clean, your reconciliations current, and your pipeline visible.
Pricing and promotions that protect margin
Discounts can fill seats or schedule gaps, but do not discount blindly. Tie promotions to upsells, table turns, or off peak slots. In construction and specialist services, quote with material price validity dates and include payment schedules. Build in allowances for seasonal overtime and urgent call outs.
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Payroll planning for seasonal staffing
Seasonal staffing can raise costs and complexity. Accurate timesheets and compliant payroll prevent surprises. If you are adding staff or changing pay cycles, our payroll services London team can set up HMRC compliant payroll and pensions, issue payslips on time, and advise on holiday pay rules. The benefits of professional payroll services include fewer errors, happier staff, and predictable cash outflows.
Small business cash flow management with cloud accounting
Digitise now, not later. Xero bookkeeping setup and QuickBooks accountancy help give you daily visibility of bank feeds, invoices, and bills. You can chase debtors from your phone, reconcile transactions in minutes, and forecast with live data. As Xero certified and QuickBooks certified advisors, BES can integrate your apps, automate payment reminders, and prepare VAT returns filing UK with confidence. This supports Making Tax Digital compliance UK and keeps you ahead of HMRC changes.
“Real time numbers change the conversation. Owners stop guessing and start deciding. That habit alone pays for the software and the support.”
-Besnik Vata, director of bes accountancy
VAT timing, deposits, and HMRC
Many businesses collect more deposits during the festive build up. Remember that deposit VAT can become due at the time of receipt in many cases. Plan for quarterly VAT returns that straddle December and January so you are not caught short in the new year. For general guidance see HMRC advice on VAT accounting schemes which can help smooth cash flow.
External reference, HMRC: https://www.gov.uk/guidance/using-vat-accounting-schemes
If you need VAT advice for small businesses or VAT help London, our team can review schemes, partial exemption, and due dates, then align your cash plan accordingly.
Worked example, hospitality scenario
A London restaurant expects a thirty percent uplift in December. The owner builds a sixteen week forecast. They bring November invoices forward by three days, add a deposit to group bookings, and move non urgent maintenance to January. Supplier terms are extended from thirty to forty five days on a portion of wine and dry goods, split into two deliveries. Payroll is moved to weekly for temporary staff to maintain morale and retention. With these steps the restaurant turns a potential cash squeeze into a planned and funded peak period.
Proof of partnership and community support
Strong results come from strong alliances. Our partnership with a respected London marketing firm Merx Marketing, directed by Daniel Nikolla, shows our commitment to wider client success. Read the announcement here to learn how we use joined up thinking to support growing businesses.
Who we are, and how we help
Founded in 2020, Bes Accountancy is a London based firm serving clients across the UK. Led by Besnik Vata, AAT licensed and a certified bookkeeper, our team of five specialists supports sole traders, partnerships, and growing companies with bookkeeping, payroll management, VAT returns, financial accounting, and account preparation. We combine Availability, Efficiency, and Trust with practical tools like Xero and QuickBooks to keep your numbers accurate and current.
Explore our story on the About Us page. Read more insights on our Blog. See results in the Projects section. Follow our latest updates on Instagram, including our post on Xero for SMEs and a primer on taxes when buying property in the UK. You can also read the BES and Merx partnership announcement which shows our commitment to broader client value.
Related blog:
Do you own a construction company in the UK?
If so we strongly recommend you to read our recent 2025 blog on managing payroll, VAT and bookkeeping, written specifically to help construction companies in the UK.
Your festive period action checklist
Build a weekly cash forecast and review it every Friday.
Accelerate invoicing, automate reminders, and offer easy payment methods.
Sequence payables, negotiate staged deliveries, and protect payroll.
Use cloud accounting, integrate bank feeds, and reconcile daily.
Plan VAT dates and deposits so January is stress free.
When you want a partner who explains things in plain English and acts fast, choose a London bookkeeping accountant that blends technology with human insight.
Strengthen your cash flow before the busy season, book a consultation with BES Accountancy and keep your business financially resilient.
Call 07816264205 or visit us at our London office for a free consultation.
Frequently asked questions, self assessment and small business owners
1. Do I need to file a self assessment return if I am a company director with no dividends?
Yes in many cases. If you receive income that has not had tax deducted at source, such as dividends, rental income, or foreign income, you will need to file. If all income is taxed through PAYE and you have no other sources, you may not need to file. When in doubt, ask us to check your position. We provide quick eligibility reviews for directors across London and the UK.
2. What records should I keep for self assessment tax return preparation?
Keep sales invoices, purchase invoices, bank statements, payroll reports, and VAT returns. Include mileage logs, CIS statements, and pension confirmations if relevant. Keep everything for at least five years after the filing date. If you use Xero or QuickBooks, attach digital copies to transactions so evidence is ready on request. This makes HMRC compliance much easier and it speeds up review by your accountant.
3. What are the consequences if I miss the self assessment deadline?
Expect a fixed penalty and possible interest on late payment. Continued delay can lead to further penalties and enforcement action. The real cost is often the time lost untangling records under pressure. Filing early avoids penalties and gives you time to plan for payments on account. Our clients who file before December consistently report lower stress and better cash flow planning.
4. How can I reduce my tax bill without taking risks?
Claim all legitimate expenses, plan capital purchases sensibly, and consider pension contributions where suitable. Keep good records so you can evidence claims with confidence. If you run payroll, ensure directors and staff are paid through the right structure. We also review VAT returns filing UK and look for timing or scheme choices that suit your business. The goal is compliance first, then efficiency. No jargon, no shortcuts.
5. Should I choose Xero or QuickBooks for my London business?
Both are excellent. Xero is popular with construction and creative teams for simple bank reconciliation and job tracking. QuickBooks is a strong choice for hospitality owners who like a friendly mobile app and built in payroll. The best choice depends on your sector, your team, and the integrations you need. We set up computerised accountancy systems consultancy and train your staff so you get value from day one. The result is cleaner books, faster filing, and better decisions.
Internal resources to explore next
Ready to make the next deadline your easiest yet
BES Accountancy supports sole trader accounting support, partnership accounting services, and company directors across the UK. Whether you want payroll management London, VAT help London, or a full handover to a London bookkeeping accountant, we can help.
Do not leave your self assessment to the last minute, contact BES Accountancy today and let us take care of your tax return with ease.
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