Service-based, wholesale, or manufacturing businesses can face declines in orders just when holiday pay, bonuses, and annual shutdowns see expenses rise. Worried about the summer squeeze? Try these.

1. Forecast to February

Projecting your income and expenses well into the new year helps you spot potential shortfalls and take action before they become problems.

2. Invoice early, follow up now

Prioritise jobs you can complete quickly so you can invoice clients straightaway.

Send invoices before your shutdown period and chase outstanding debts while clients are still around. Incentivise early payment for completed work by offering a discount.

3. Prioritise essential spending

Identify what expenses are necessary and what can wait until revenue picks back up. See if you can re-negotiate payment terms with suppliers.

4. Prepare for January’s tax obligations

The 15 January due dates for PAYE, GST, and provisional tax can feel like a Grinchy surprise. Set aside funds now to avoid starting the new year under pressure. Aim to pay on time to avoid interest and late payment penalties which apply if you don’t. If paying all your tax is going to hurt your bank account, prioritise paying the GST and explore the services of an Inland Revenue-approved tax pooling provider such as Tax Management NZ to pay the provisional tax later. They can reduce IRD interest and eliminate late payment penalties.

If this season feels tight, get in touch. Our financial advisors can help you plan ahead, manage your cash flow, and explore IRD instalment options to lighten the load.