As the year comes to an end, most business owners are busy finishing jobs, sending invoices, and looking forward to a well-earned break. But December and January can be tricky months for cashflow.
Sales might slow down, bills keep coming, and before you know it, the new year starts with more stress than rest.
Here’s what to watch for, what the numbers are showing, and what you can do now to stay ahead.
December Cashflow Warning Signs
December often looks better than it really is. Some businesses see a short burst of income, while others go quiet. But rent, wages, and bills don’t stop.
Watch out for these red flags:
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Customers asking to pay “after Christmas.”
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Bills piling up or ATO reminders starting to appear.
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Using personal money or credit cards to cover business costs.
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No cashflow plan for January or February.
If any of this sounds familiar, it’s time to pause and plan before the holidays.
What the 2025 Numbers Are Telling Us
Across Australia, business failures have climbed sharply this year.
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More than 13,000 companies entered insolvency in the past 12 months — up 34% on last year.
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VIC saw the biggest increase, up 77% compared to the year before.
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QLD and NSW also rose, by 59% and 36%.
These numbers show that many businesses are still feeling the pinch from higher costs, slower payments, and tighter lending.
It’s not about fear or panic — it’s about being prepared. Now is the time to look closely at your cash position and make sure your business is ready for a slower start to the new year.
Holiday Trading and the Quiet January Trap
December can be misleading. You might have your best sales month of the year, but by late January, that money is gone. Bills, wages, and tax deadlines don’t wait for cash to come in.
To get ahead:
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Plan your cashflow through to March.
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List all payments due after the holidays — including rent, BAS, and super.
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Talk to suppliers early if you might need extra time to pay.
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Avoid dipping into personal funds unless you have a clear plan to repay yourself.
A simple forecast now can save a big headache later.
The 5 Common Mistakes Business Owners Make Over the Holidays
- Ignoring unpaid invoices until February.
- Thinking December profits will fix old debts.
- Using personal loans or cards to cover business costs.
- Waiting until tax deadlines hit to take action.
- Avoiding tough conversations with their accountant.
The earlier you act, the more options you’ll have to turn things around.
Retail and Hospitality: What’s Happening After Boxing Day
If you run a shop, café, or restaurant, December might be your busiest month. But like many business owners, you will see trade slow down sharply after Boxing Day.
Costs stay high — wages, rent, and stock — while customers cut back after Christmas.
To prepare:
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Keep track of cash daily in January.
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Avoid ordering too much stock.
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Hold off on big sales or new spending until you know how trade looks in the new year.
A busy December doesn’t always mean a strong January.
If You’re Struggling Now, Act Early
If things already feel tight, don’t wait until the pressure builds. There are ways to get help — from talking to your accountant or exploring options like a business restructure or repayment plans.
The earlier you act, the more control you keep. Many business owners who take advice early find they can keep trading and recover within months.
The earlier you act, the more control you keep. Many business owners who take advice early find they can keep trading and recover within months.
Year-End Reality Check
Ask yourself:
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Can my business cover 6–8 weeks of slower income?
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Are all tax and super payments up to date?
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What happens if customers pay late in January?
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Do I have a plan if sales drop by 20%?
If you’re unsure about any of these, speak with your accountant or a specialist expert like our team at de Jonge Read® before the holidays. A short conversation now could protect your business and your peace of mind, well into 2026.
The Bottom Line
December isn’t just the end of the year — it’s a turning point. Use it to plan ahead, protect your cashflow, and start the new year with confidence.
Before the holidays, sit down with your accountant or bookkeeper to go over your cashflow and obligations. They can help you spot issues early and work out a plan that keeps your business strong through January and beyond.
The sooner you act, the more options you’ll have.
Need support?
If you’re seeing early signs of financial pressure, don’t wait. Contact the de Jonge Read® team today to explore the best course of action and protect your financial future.
Did you know?
Phoenixing is another name of business restructure. Read more about business restructures and when this can be an option for you.
