Business checklist before you close for the holidays
With the countdown to the festive season already upon us, how prepared is your business to close for the holidays?
Use this handy checklist to tick off the fundamentals before you lock up and leave.
When and when not to broadcast your closure dates
Get the message out about your closing dates with minimal effort. Add it to your email signature panel, invoices and quotes. Also, make it part of your newsletter, Christmas cards to clients, and social media posts. Include it in a short email to clients, suppliers, staff, customers and vendors. When staff clock off for their break, ensure they've set up an auto-responder email with details of an alternative contact.
Make sure you update your website, Google My Business account, online stores and support sites with the closure dates, using a banner, headline, or temporary pop-up. Tell customers in person and add it to your automated phone greeting or on-hold messages.
But rather than posting your holiday hours or break on your premises for all to see, consider ones that say 'Call us for holiday hours'. That way, you're not inviting burglars to your site when they know it will be unattended.
Getting your outstanding invoices paid
SMEs wait an average of 56 days to be paid. That's despite lobbying from the Federal Government and Australian Small Business & Family Enterprise Ombudsman to reduce payment terms to 30 days.
Here's how to streamline your processes for faster payments. Factor holidays into your billing cycles, so you send invoices well ahead of the break. Make online billing and payments available. Build a rapport with the accounts people working for your main clients so you can liaise with them directly.
Check your financial records to identify which of your clients delay end-of-year payments until January. Does that fit with your tax strategy, or would you prefer them to pay you in December? If you would prefer to be paid earlier, remind them about their obligations to your terms. Would different payment methods suit them?
Have a backup cash cushion in place or secure access to invoice financing, not payday loans which aren't good for business with their high-interest loans. Try adding a late payment fee of 5% to 10% to your invoices and contracts. It can kick in a fortnight or 30 days after the due date. If it drags on, charge compound interest.
Of course, make sure your company has paid its invoices and staff their full leave entitlements to help spread the Christmas cheer.
Backup your servers and turn off equipment
Double-check that your backup cycle for your computers and servers occurs just before and after your shutdown. Schedule your offsite backup to ensure it's picked up early. Instruct your IT team who to contact if there's a problem and ensure your answering service updates callers on when issues will be fixed, too.
You may think you'll need to switch off all office equipment, but these are the ones to leave on:
Refrigeration units
Security systems
Phone system
Fax machines
Servers and backup systems.
Get office-ready for the new year
If you need new office equipment, pre-Christmas sales could offer bargains. By timing your purchases then, you'll pay less GST and PAYG tax on your late February Business Activity Statement.
As well, make capital purchases mid-way through the financial year. This means you're less likely to be rushed into spending what's left of your budget allocation on the cusp of June 30. Just before Christmas is an ideal time to audit your office equipment so you can replace damaged or obsolete gear.
Do your security checks
Work through these security tips before your holiday closure:
Revisit your system security plan and policies with your staff
Test your security gear, such as fire alarms, access control system, cybersecurity software, panic buttons, and CCTV systems
Lock up and arm your site when you close and ensure no cash is left behind
If you've received stock in shipping boxes, shred the branded boxes and shipping labels, then place them in your rubbish, so outsiders won't know what valuables you have on your premises
Do your due diligence checks on seasonal employees
Leave the lights on, or even better, have them turn off and on randomly to deter intruders
Unplug unnecessary devices including coffee makers, photocopiers and air conditioners
Project your company's data by using a Virtual Protected Network to check your office email on the go, rather than public Wi-Fi.
Make a new year appointment with us
Before you take your break, check your insurances are up to date and book a January appointment with us for a more thorough review. We can discuss your risk profile to ensure any changes or improvements are reflected in your policy package. They might include new equipment, moving office, hiring more staff, changes to your product lines or services, and more. We're here for you, so have a refreshing break and Merry Christmas.
Source: One Affiniti