Summertime brings dramatic changes in temperature which may require businesses to reassess their budgeting strategies to cover seasonal expenses. As an accountancy firm with decades of experience, the team here at GW & Co understand the importance of budgeting for and managing expenses during the summer season. To stay on top of seasonal changes and plan for their impact on financials, we’ve developed six tips businesses can use to budget for their summer operations and keep costs under control.
1. Purchase Summer Supplies in Advance
Planning ahead for supplies needed during the summer can help businesses save money and stay on budget. Since summer materials may be readily available during the spring, it is important to order supplies beforehand with discounts and cost saving initiatives in mind. Additionally, since summer materials may be in high demand, purchasing supplies in advance can also ensure businesses have the materials they need when they need them.
2. Monitor Inventory
Sounds obvious but this is often overlooked by businesses during summer. Staying organised and aware of inventory can help reduce expenses associated with buying unnecessary supplies. When businesses monitor their inventory, they can remain aware of available supplies and purchase only what is needed to avoid overspending.Pay
3. Attention to Energy Costs
When temperatures start to rise, air conditioning costs may also start to reach higher than usual levels. Businesses should check their current energy rates and work with utilities to look into renewable energy sources, such as solar or wind, as well as special energy-saving offers in order to remain cost efficient and save money.
4. Maximise Automation Tools
Summer can be a busy season, especially in the service or tourism industry. That being said, businesses may want to make use of automation tools and services to remain up to date on tasks such as customer communication, order processing and more. Automation tools can save time and money while streamlining processes.
5. Manage Cash Flow
When temperatures climb and spending increases, businesses may need to focus on optimising their cash flow. Cash flow management can involve analysing daily financials, regularly checking accounts receivable and accounts payable, and ensuring customer payments are done in a timely manner. Speak with your accountant in regard to this. You can work together to ensure your cash flow is at its optimal.
6. Analyse Financial Data Regularly
Last but not least, businesses should regularly analyse their financial data in order to understand their current budget and the expenses involved. Using this data, businesses can make better decisions, take advantage of savings opportunities, and identify cost-saving measures. Your accountant should regularly do this and advise you but as a business owner you must ensure you ask for reports and understand the data.
Overall, budgeting in the summer can be challenging. But, with the right approach, businesses can achieve their goals and stay on track during summertime.
If you need additional help accurately budgeting for your business needs this summer, our team of experienced accountants are here to help. Contact the team here at GW and Co today and we’ll help you develop a budgeting strategy specifically tailored to your business.
