Cashflow tips for Christmas Period

For many small businesses, December is a wonderful but challenging time. Sales can be strong, but cashflow can tighten quickly, especially if your business shuts down for a week or two. Wages, rent and supplier payments continue as normal, yet customers often disappear until January.

A little preparation now can make a huge difference. Below are my simple, effective steps to help protect and strengthen your cashflow over the Christmas period, using proactive debt chasing, Xero tools and upfront deposits.

1. Chase Debts Early - Don’t Wait Until the Week Before Christmas

December is a short and distracted month. Many customers deal with:

• Reduced payment runs

• Slower approval processes

• Finance teams out of office

• Their own seasonal cash pressures

  If you want money in before Christmas, start following up now. Even invoices due in January should be chased early, as many businesses complete their final payment run between the 18th–20th of December.

2. Make Use of Xero’s Automated Invoice Reminders (They Really Work!)

Xero’s built-in reminders nudge customers automatically, reducing admin and helping you stay front-of-mind.

Set reminders for:

• 3 days before due

• On the due date

• 7 and 14 days overdue

  If you’re not using automated reminders yet, December is the ideal time to switch them on.

3. Offer Easy Ways to Pay.  Remove The Barriers.

The fewer steps involved, the quicker customers pay.

• Add Pay Now buttons (Stripe, GoCardless, PayPal)

• Always show clear bank details

  Convenience often makes the difference between being paid today and being paid next month.

4. Take Deposits to Protect Holiday Cashflow

If you’re delivering goods or services in December or early January, collecting a deposit is one of the simplest ways to secure cashflow.

Deposits work especially well for:

• Projects starting in the new year

• Hospitality, catering and events

• Trades and construction

• Consultancy and professional services

  Best practice:

• Quote the full price

• Issue a deposit invoice for 20–50%

• Confirm that work will begin once the deposit is received

  Deposits help cover wages and other outgoings, they also reduce the risk of January cancellations.

5. Invoice Immediately — Don’t Wait “Until After Christmas”

Delays in invoicing lead to delays in payment. If work is completed in December, invoice straight away.

Getting your invoice into the customer’s system early means you're not held up by:

• Last payment runs

• Staff annual leave

• Holiday shutdowns

• New-year budget resets

  6. Communicate Your Christmas Closure Dates Clearly

Let customers know when you’ll be closed and when you’ll reopen. This subtly encourages payment before the break.

Include closure dates in:

• Email signatures

• December invoices

• Reminder messages

• Xero automated reminders (“Please note we close on 22 December…”)

  Clear communication prevents surprises…and unpaid invoices.

7. Review Your Debtors List Weekly Throughout December

Set aside 10 minutes each week to check:

• Who owes you money

• Who is overdue

• Who needs a call

• Who needs a final statement

  A weekly rhythm keeps cashflow front and centre and reduces the risk of debts slipping into January unnoticed.

My Final Thoughts

Cashflow doesn’t have to be stressful over Christmas. With some simple forward planning, early debt chasing, automated reminders, deposit payments and prompt invoicing, you can head into the festive break with confidence and peace of mind.

If you’d like help setting up Xero invoice reminders, payment links or a streamlined debt-chasing process, we are always here to support you.

If you need to speak to us you can always book an appointment online.

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