Tuesday, 25 November 2014

As the holiday season approaches




In recent times there has been the tendency for the Christmas holiday season to stretch out over a number of weeks and therefore with a few weeks to Christmas it would seem an appropriate time to consider the implications for business.


Without doubt of biggest concern to businesses will be the impact on cash-flow. Many companies are operating very close to the edge and any delays in payment could have serious consequences.


In some instances invoices which fall due for payment after the 19th December could well not be settled until the 5th January – giving an at worse scenario of 3 weeks delayed payment.


It would therefore seem prudent to look at your last half December receivables and make a realistic forecast of just how much cash will “come in”.


Similarly with “just in time” inventory it would be sensible to ensure that sufficient stock will be on hand for the early days of January when there are likely to be disruptions to the supply chain.


Trying to get things done in the UK during the latter half of December has proven to be a challenging task so it would be best to ensure you take appropriate action now and are positioned accordingly.

 

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