Working from London and the South Coast, Tide Accounting works with a number of businesses whose income has a seasonal bias. It is not just from ice-cream manufacturers who need to build their businesses around seasonal variations: logistics firms and training companies often have business cycles based around significant peaks of activity.
If you are in the process of building a business with a
seasonal cycle, what can you do now to make the business easier to manage in
future? Our top tips are below, and if you’d like more help, please get in
touch on 01425 674776 or 0208 012 79898 and we can help with a FREE discussion
and appraisal of the business.
- Make your Accounting Dates work for you.
When you are setting up your organisation, bear in mind the legal obligations
on financial reporting and tax payments. You can apply to adjust your
reporting dates (‘Year End’) to coincide with your cash-flow peaks. Once set,
you should not have to concentrate so hard on ploughing back income into
- Plan Ahead for your Work Force
Engaging additional staff for peak activity times can be both time-consuming
and expensive. Plan well-ahead to give yourself time to both recruit, train and
fund the new staff. The modern economy has a growing pool of flexible workers –
and these workers may be easier to find in online recruitment sites and even
local social media, but their flexibility can be a major asset. You will need
time to get your administration set-up and organised beforehand, though, so do
not wait until the order book is building up.
- Diversify (when possible) to extend income
Adding extra earning potential can be a life-saver for businesses of all kinds.
In terms of seasonal businesses, take a step back and look at the core skills
(and equipment, skills and employees) and research new activities that could
extend the income generating potential of the business. Think with an open
mind: for example even business premises themselves could generate income in
some situations. Look for possible partners who may benefit from your expertise
- Build a budget and stick to it!
Every business needs a budget and sensible business forecast. It is key to work
to your budget and not let yourself get swept away during your peaks if that
will compromise the business’ future during the low activity periods.
If you follow these principles you could well be on the way
towards a successful seasonal business – there is a lot more to long-term
profitablility, of course – and Tide Accounting can help you at every stage.
For more details, contact us on 01425 674776 or 0208 012
79898 or email us at email@example.com