Ensuring Financial Stability: A Guide to Navigate the Year- End Challenges
Case Study: The Overdraft Extension Dilemma
One of our clients assumed their bank would automatically extend their overdraft, but unfortunately this wasn't the case. When the extension was not renewed, the client found themselves in a bit of a pickle, struggling to pay their bills. To secure the extension, the bank required up-to-date financials and a forecast, which Yorke Stone were able to provide.
However, this situation emphasizes the need for preparedness, especially at this time of year.
What You Need to Consider Now:
As the holiday season approaches, along with its significant expenses, it's vital to anticipate and plan for your businesses financial needs, and any financials and
forecasts that may be required. Here's a checklist to guide your preparations:
- Cost of Christmas Party
- Potential Staff Bonuses
- Staff and Client Christmas Presents
- Funding Holiday Pay During the Christmas Shutdown
- Adapting to Rising Costs (e.g., fuel, wages)
- Potential Slowdown in Debtor Payments
- GST and Provisional Tax due on January 15, 2024
- Potential Downturn in Business
- Seasonality of Your Business
- Potential delayed payment from clients
If you have forecast for this, then you obviously have a great cash flow foresight. If you would like one of our team to stress test your forecast, or review your tax payments coming up in January, then please reach out. If you are reading this list and feeling a sense of dread or despair, we can help!
How We Can Help:
Financial Forecast Preparation: The first thing we can assist you with is a financial forecast for the next four months. This will serve as a roadmap for your business during this crucial period.
Contact Your Bank: If you anticipate needing bank support during the Christmas break, don't delay. Reach out to your bank now. They might require documents like interim accounts and forecasts to support your overdraft application. Act promptly, as banks are usually overwhelmed with requests at this time of the year.
Comparison of Trading Trends: Even if your working capital seems stable, it's wise to compare your current trading patterns with the same period last year. This analysis can reveal insights and help you make informed decisions.
In Conclusion:
At Yorke Stone, we are dedicated to helping you navigate these financial challenges. Preparation and planning are key. If you have concerns about your cash flow or find the financial landscape unclear, please don't hesitate to reach out. We offer a complimentary 30-minute consultation to discuss your specific situation and provide tailored guidance.
Remember, timely action and strategic planning today can pave the way for a stress-free and financially secure holiday season. Your peace of mind matters, and we're here to assist you every step of the way.