Spending can always get a little out of hand at Christmas time and making sure your business does not cost too much can be difficult. Budgeting all year around allows you to limit your costs, and even at Christmas this is something you should always do.
Coleman & Co can help every business plan their Christmas budget and forecast finances several months in advance. Even at Christmas, our team will continue to help you make a healthy profit.
Plan Your Christmas Budget
Completely ignoring the fact it is Christmas means you are not adjusting your business when you are likely to spend more money. Whether this is through bonuses and gifts for staff members, purchasing festive decorations or any other additional costs, you should plan a new Christmas budget.
During this time, if you continue to plan your business with the same budget as every other period of the year, the same profit will not be made. As you are forecasting the same profit based on the budget you have set yourself, there could be a problem if you do overspend during this period. Preparing a new budget is always the safest option to adjust for any out-of-the-blue and unordinary costs.
Your Christmas Marketing
Whether you invest money into your marketing at Christmas or continue your ordinary marketing style, you should be planning how much money this is going to cost you. Coleman & Co can provide you with the financial reports you need, evaluating the amount of money you should spend within your business and what revenue this could make you.
By doing this, you have a good overview of how your business will perform based on your spending. Again, this allows you to adjust your budget to make sure a good profit is reached at the end of the month.
You also shouldn’t go crazy with Christmas deals. Although you are looking to increase sales and special offers could be a great way to do this, you must make sure a good profit is made.
Working Staff Members
Inevitably, your staff members are going to want time off over Christmas. As a small business owner, it is your job to meet their needs and make sure they are given the designated time off during this period. However, during this very busy time, you do not want to spend too much money on staff members when there is less productivity because of their absence.
You should always plan well ahead, and a great option can be to close over Christmas. This will reduce your costs and although staff wages may still be paid, there are no additional expenditures if you decide to temporarily close. By using accountants, finances can still be managed over the Christmas period using the correct systems. This ensures staff members’ payroll is correct and your expenditure is all in place.
Organising Your Christmas Party
Although the HMRC provides exemptions for Christmas parties, you should still be wary of how much you are spending. Of course, you want to treat your staff members to a fantastic night for the year of hard work and as long as you stay under £150 per head, it will be tax exempt.
At the same time, any Christmas parties should still be part of your bigger monthly budget during the Christmas period. This Is why you should create a bigger budget during this time, to ensure you are still not overspending which could potentially damage your business financially.
Budgeting during this period is essential to keeping your profit high, whilst also allowing staff members to enjoy themselves and receive the rest they need.
For advice on how to plan your Christmas budget effectively and make a safe profit during thisperiod, contact Coleman & Co today on 028 9266 3599. We can deal with all your finances throughout the year and help you forecast your business for the months ahead, assisting every business in the Lisburn area.