7 things Small Businesses need to know this Christmas

The Christmas period can be one of the most demanding times of the year for small businesses. Whether you’re winding down or gearing up for your busiest trading season, a bit of forward planning can make all the difference.

There are seven practical considerations to help you stay organised, compliant and stress-free over the holiday break.

1. Public holidays and payroll

Christmas and New Year public holidays often lead to tricky pay calculations. Make sure entitlements such as time-and-a-half, alternative holidays and closedown rules are applied correctly. If anything is unclear, check the latest MBIE guidance.

2. Annual closedowns

If your business shuts down over Christmas, staff must receive at least 14 days’ notice of a lawful annual closedown. It’s a good idea to tidy up leave balances and payroll processing before closing the doors. Find out more info here.

3. Cash flow pressure

December and January can squeeze cash flow, with reduced trading days, higher wage costs and upcoming GST or provisional tax dates. A simple cash flow forecast can help you stay ahead. If things look tight, it’s better to reach out early.

4. Managing debtors

Encourage customers to settle their accounts before the break. Sending reminders and offering easy payment options can prevent overdue invoices from piling up in January.

5. Staff leave planning

Confirm leave requests early and make sure everyone understands what’s been approved. Clear communication helps maintain service levels and avoids last-minute issues.

6. Cybersecurity during shutdowns

When offices are closed, cyber risks often rise. Secure systems, update passwords and set clear auto-replies without revealing too much about your shutdown period.

7. Health, safety and wellbeing

For those working through the holidays, fatigue and short staffing can increase risks. If you’re closing, ensure the premises, equipment and systems are safely secured. Supporting staff wellbeing helps everyone start the new year on the right foot.

This article offers general insight and may not reflect your unique circumstances. We recommend conducting your own due diligence and seeking professional guidance for advice. Feel free to get in touch if you require assistance.