As the festive season begins, many businesses will start to enter a few weeks of spending on items and events that were unplanned or not in their initial budgets.
It can add a significant dent into their profitability if steps aren't taken to ensure the company doesn't let spending get out of control.
Soldo, a multi-user spending account services provider, has put together some tips for businesses to ensure they have a very Merry Christmas without the financial hangover in the New Year:
1) Have a strict budget in mind and stick to it: Simple, yet you'd be surprised at the number of businesses that really have no idea how much Christmas cost them as the New Year starts to dawn.
2) Stay in control of spending the smart way: There are now loads of simple ways to stay in control of your employees' spending.
For example, with service providers like Soldo you can set individuals limits and even specify where they can or can't shop. Perfect for maintaining control over your cash flow.
3) Don't put gifts, cards or entertaining on credit cards: With an average interest rate of 15.9% in the UK, that £15 gift will end up costing your business much more in the end.
4) Avoid store cards that promise the world : Again, they will suck you in and cost your business more in the end, especially as the festive season starts to kick off and it's easier to forget purchases.
5) Be receipt smart: capture them or lament their loss when your tax return is due. It's easy during the Christmas period to spend more on smaller items, but these quickly add up.
To make it easier to keep track of receipts, use a prepaid card or service that lets you photograph and capture receipts directly and say goodbye to that bottom of the bag receipt fumble.
6) Make sure staff are fraud savvy: Christmas brings with it a rise in fraud so make sure your staff and contractors know what to watch out for when spending. The Police's Action Fraud website is a great resource to help you stay safe.
7) Track your spending: Even if you set a company Christmas budget it's no good unless you're tracking it. Use the technology available to get a step ahead and track a tag or keyword used for your spending category on your app or finance software of choice.