Several organisations close for the December holidays which can affect cashflow if you have not planned for this.
For this reason, it would be prudent to send statements and invoices before the closing dates, especially where customers have informed you of their shut-down periods, e.g. the construction industry.
Similarly, you should advise your customers when you will be shutting down and reopening in the new year. It is also important to provide an alternate contact, should you be away for longer than the shutdown period, for account queries and assistance.
Proper planning of cash flow should be done to ensure that earlier release of monthly expense obligations or preloaded payments will be authorised before the office shutdown period, given that most administrative staff members will be on leave at month end in December.
It is never pleasant to start the new year with overdue and unpaid accounts.
If earlier payment times are implemented for December, ensure that your customers are informed of the newly implemented payment terms. Ensure that the due dates displayed on your invoices correspond with the expected settlement terms.
Pay special attention to customers who routinely pay late, especially since normal email or text reminders will not go out at the end of December. With the trend of overspending during December you might find it difficult to recover the December missed payments in January from cash strapped customers.
It is also a good idea to change e-mail signatures, wishing your customers and suppliers a good festive season to keep the relationships on friendly terms. Often a kind message along with the usual phrases to accompany a claim that is in line with the time of year is appreciated.
It would be a good idea to focus time analysing the operational expenses to ascertain whether some monthly recurring costs are justified and necessary. If it does not add significant value to the organisation consider abandoning the expense or replacing it with a more effective solution. It is suggested to review the latest technology trends and competitors of the service providers you currently use, since you can often get the same product or service at a better price from a different service provider.
Have good December debtors month and come back refreshed in the new year.