December might feel like clocking off time, but for most small business owners it’s a juggling act of wrapping up jobs, paying staff, and making sure the bills don’t pile up while everyone’s on a beach sending you pictures to you, back at the office with some tinsel and a little Santa toy singing tinny carols.

If you’ve ever spent Boxing Day wondering how your cash flow vanished faster than the prawns at Christmas lunch, this one’s for you. (It might have been me. Was I invited? I'm dangerous near prawns at Christmas!)

The Christmas Cash Flow Crunch

I've found that for trades and small businesses, December brings two things: a rush of work before the break, and a biiiiig slowdown after. You’re paying wages, super, and holiday leave, but sometimes with no new invoices coming in for weeks.

Christmas isn't supposed to be stressful. It just means we need to plan like Santa. Make your list, check it twice, and know what’s coming. (Ho ho ho, did you see what I did there?) 

1. Map Out the Money Weeks

Grab your wall calendar and look at the next six weeks. Mark wages, rent, super, and BAS, and then mark when money will actually hit your account (not when invoices are due). If you have a client that's perpetually behind in payments, there's no use in marking the due date. They're making it hard for you. 

If you see gaps, you can plan now to:

1. Send invoices earlier.

2. Chase late payments.

3. Hold off non-urgent spending until February.

This simple visual check stops those post-Christmas surprises, and is a great way to make it look like you used that calendar all year! 

2. Create a Christmas Float Account

If you’ve been using Profit First or have multiple bank accounts, set up a short-term Christmas Float account. It’s a buffer for:

1. Holiday pay

2. Reduced January income

3. Any emergency costs (because the air-con will break on Boxing Day)

Even a small buffer gives you breathing space and stops the credit card panic. If you're feeling enthused, create one for the celebration costs too. Then work out how much to slide away each week – even enough to meet the smallest guesstimate will help at the end of the year.

3. Review Your Client List

End-of-year is a great time to look at who you’re working with. That dude who is perpetually late with payments? Maybe he deserves some coal this year! 

1. Who always pays late? (Coal!) 

2. Who’s great to deal with and values your work? (Gifts!) 

3. Which jobs drain your time or profit? (Coal!) 

You don’t need to make drastic changes but awareness now helps you choose smarter in 2026. Look for ways to reduce your coal list, and increase your gifting list! 

4. Don’t Forget You

If you’ve skipped your own pay or pushed it to “next week” for months, take a reality check. Paying yourself isn’t selfish. It’s a KPI that tells you whether the business is sustainable or if it needs some changes.

Most small businesses in Australia do this, and here's the one big lesson for all of us. 

If there’s not enough left over after paying every one else, it means your pricing or structure needs a tweak next year.

5. Celebrate the Wins

Key performance indicators (KPIs) are not always financial. Maybe you got more positive feedback this year. Perhaps you didn't have to skip a pay for yourself. Maybe you have enough money to buy a bottle of booze for your staff, or your stress levels were lower. 

Repainting, rebranding, rebooting, networking... what else have you done this year to support your business, and what has your business done that supports you? Maybe you finally hired help, cleaned up your Xero, or stayed on top of BAS without the panic.

A Thought For 2026

The best time to plan for next Christmas is right now. Your future self will thank you for:

1. Setting aside 1% of turnover each week as a buffer (or more if you can).

2. Reviewing expenses quarterly.

3. Keeping reports up to date.

You’ll stroll into next December like the Santa with the biggest beard, belly and laugh at a Santa convention.

Ho ho ho, Merry Christmas, Happy Hanukkah, and Seasons Greetings from Northwest Accountancy and the Unexpected Bookkeeper team! 

Want help setting up systems that make this simple?

Join The Unexpected Bookkeeper for plain-English training and step-by-step support so your business runs smoothly all year, not just when the tinsel’s packed away. We talk about Key Performance Indicators and more in December, and in January we're exploring Xero, BAS, and Bookkeeping with Profit First.

Now's a great time to sign yourself up to grow your business and feel confident in your management style! 

Find out more and join here.