Small business tips for managing cash flow over Christmas

If you’re a tradie or a trade business owner, having time off over Christmas is a well-earned break after a big year. But while you’re taking time to recharge, many of the running costs of your small business don’t stop. You’ve still got to cover staff wages and holiday leave, equipment and vehicle leases, and rent on your factory or worksite – even though there might be no money coming in. This can mean managing cash flow becomes an issue, especially if you haven’t planned ahead.

To avoid cash flow stress during the holiday shutdown, get your finances in order before downing tools for the year. These cash flow management strategies from MYOB, Xero and Tradie Coach will help you avoid a financial squeeze so you can kick back, hop in the pool and enjoy the break. 

Cash flow management strategies for the Christmas shutdown

● Check in with your accountant to see how your cash flow is tracking.
● Start putting aside extra money to cover business expenses and wages while you’re not working.
● Get on top of invoices – provide lots of payment options and chase overdue invoices straight away.
● Pull back on discretionary spending in the latter part of the year. 
● Talk to your bank about short-term solutions, like a business overdraft, if money is tight.

Check in with your accountant

First things first: sit down with your accountant a couple of months out from the holiday shutdown and figure out how you’re tracking, recommends Xero economist Louise Southall. “Work out your cash flow situation based on your current numbers. You might know how much money is coming in before Christmas and you'll probably have a better idea of which bills are going to be coming in,” she explains. 

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Set aside extra money

Setting up a financial buffer can help you avoid stress and keep your business running smoothly until work picks up in the new year. Even small amounts put aside over several weeks or months can make a difference. “This will keep you going over the break while you don't have jobs being finished and cash coming in,” Louise says.

Have a separate account for wages

Paul Rogers, head coach and founder of Tradie Coach, suggests setting up a separate bank account for wages – for yourself as well as your staff. 

“Identify your typical monthly wage bill. Multiply that by 12 to calculate your annual wage cost, then divide by 11. This is how much you should be putting into your wages bank account every month,” he says. “While there may not be a lot of time to build a full buffer before the end-of-year shutdown, it’s still a smart move to begin now.”

Provide lots of payment options

A common pain point for managing cash flow, especially as the end of the year looms, is getting paid. Louise says providing clients with as many payment options as possible makes it easier for them to pay your invoices. “I love a really big ‘pay now’ button on your invoice. Small businesses that do that get paid twice as fast as those that don't have that button,” she says.

Chase invoices early

If accounts are overdue, send reminders and follow up with your clients straight away. “Don’t leave it until mid- or late-December to start chasing up money owed to you,” explains Sally Davies, MYOB’s GM, Soloists and Embedded Finance. “Get in front of your clients at the start of the month to give yourself the best chance of being paid ahead of the holidays.”

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Cut back on spending

Staying on top of money going out is just as important as cash coming in. Sally says pulling back on extra spending in the latter part of the year is a sensible approach for small businesses. “It might seem like a no-brainer, but reducing discretionary spending in the months leading up to year end will stand you in good stead come January,” she explains.

Talk to your bank

If your finances are tight, talking to your bank about short-term solutions for managing cash flow, like a business overdraft, can help tide you over. “Quite often banks are willing to offer overdraft facilities where you pay a small monthly fee and only get charged interest on what’s used,” Paul says.

Looking for more ways to save your business time and money?

Check out our story on how to run your business better with Bunnings Trade PowerPass

The information in this article is general in nature. It doesn’t take into account your specific financial position, needs or circumstances. You should look at your own financial position, objectives and requirements and seek professional advice before making any financial decisions.

*Offer available until December 31, 2025 for Bunnings Trade PowerPass members who purchase a new Xero subscription in Australia. This offer is only available to organisations that are new to Xero and based in Australia. This offer only applies to Business Edition plans and does not apply to add-ons or payroll only plans and cannot be used in conjunction with any other plan offer, any other conversion services and cannot be exchanged for any other Xero offer.
The promotion will be applied upon checkout. Full subscription pricing applies from month seven at the pricing applicable at that time. Xero reserves the right to change or terminate the terms of the offer at any time, and to verify that the subscriber is a Bunnings Trade PowerPass member.

^Bunnings PowerPass Offers on select MYOB Products available for Eligible Bunnings PowerPass Members, who are new and returning MYOB customers in Australia only. Additional charges apply for the use of optional Premium Features, including Payroll, Online Invoice Payments and Premium Inventory. Offer ends May 1, 2026 unless varied or discontinued. Not available in conjunction with free trials or any other offers. See full offer T&Cs before purchase.