It’s November—the season of turkey, family gatherings, and maybe spending a little too much on holiday deals. For businesses, it’s also the season of cash flow crunches. Between year-end expenses, slower client payments, and prepping for taxes, November and December can stretch your bank account thinner than pumpkin pie at Thanksgiving dinner.
The good news? With the right budgeting moves, you can keep your cash flowing smoothly into the new year. Let’s break it down:
1. Forecast Like a Fortune Teller
Grab your numbers from the past 11 months and map out what the rest of the year looks like:
- Expected income: Who still owes you, and when will they realistically pay?
- Expected expenses: Payroll, vendor invoices, rent, utilities, holiday bonuses.
- One-offs: Think about year-end parties, equipment upgrades, or extra marketing pushes.
When you can see the road ahead, you’re less likely to get blindsided.
2. Tackle Accounts Receivable (A/R)
Unpaid invoices = cash that should already be working for you.
- Send reminders (friendly ones work wonders).
- Offer small discounts for early payment if needed.
- Don’t be afraid to pick up the phone—sometimes a quick call gets things moving faster than another email.
Think of it like collecting all your owed Halloween candy before it goes stale.
3. Delay Non-Essential Spending
Want to upgrade office furniture or launch a big project? Ask yourself: Do I need to do this before December 31?
Sometimes waiting until the new year gives you better breathing room—and a clearer picture of your tax situation.
4. Set Up a “Cash Cushion”
Aim to have at least one month of operating expenses in reserve. If that sounds impossible, start small—stash away what you can now so January doesn’t hit you like a snowstorm.
Pro tip: Even temporarily reducing owner draws or discretionary spending can help build this buffer.
5. Make a Budget for 2026
Don’t just focus on surviving December—look ahead to January. A fresh budget for the new year gives you a roadmap for growth.
- Set revenue goals.
- Plan for recurring expenses.
- Build in savings for taxes and unexpected costs.
It’s like making New Year’s resolutions, but for your business bank account.
Final Thought: Don’t Just Hope, Plan
Cash flow problems are one of the top reasons businesses struggle—but they’re often preventable with a little foresight. By budgeting smartly now, you can enjoy the holiday season without stressing about whether your business bank account will keep up.
Next Step: Block out an hour this week to update your cash flow forecast. Better yet, review it with your accountant (hint: Ledger Right) to spot tax-saving opportunities and set yourself up for a smoother 2026.
If you need or want assistance with this, reach out and we will help set you up for 2026…without all the stuffing! Contact Us
