Previously, we’ve addressed the issue of cash flow and the fact that many RTOs are experiencing difficulties with this area of business operations.

Christmas is a tricky time for any business when it comes to cash flow. It is particularly challenging for RTOs, who have to balance public holidays with ‘summer school’ terms, Government department closures and numerous other considerations.

When working with our clients, we take a long-term approach to managing cash flow. We develop long-range forecasts and identify potential issues well in advance so they can be addressed appropriately. We implement systems and regular reporting that helps business owners like you stay on top of your numbers, so you can focus on the things that really matter to you.

If you are looking for an accountant who can provide true business advisory services, why not work with a firm that specialises in the vocational education sector?

In the interim, here are some basic strategies to help you get through the next few months…

  • Avoid spending unnecessarily when income is reduced; schedule your repairs or new purchases across the financial year so you can spread out your expenses.
  • If you’ve been providing services to other businesses (corporate training for example), make sure you send invoices out well before the Christmas break.
  • Take the time to reconcile any outstanding payments that you are owed and chase up your debtors before the new year.
  • Make sure you’ve set aside funds to cover your Super contributions, BAS and any tax payments ahead of time, so that even if you’re away from your office, the tax man will still be taken care of.
  • Even if you go away on holidays, your staff still need to be paid; don’t forget to account for public holidays when banks are closed. It may also be possible to schedule your payments in advance so you don’t have to come back into the office or log on to make or authorise payments.
  • If you’re not running classes during the Christmas period, consider whether it is cost-effective to keep your office open. If there will be no staff on the premises, take the opportunity to reduce your power costs by turning off any systems or tools that will not be used. This includes lights, printers and computers, TV screens and other non-essential electrical items.

If you’re worried about cash flow this Christmas and want to talk about solutions for your business, contact our RTO accounting experts today.