Wander into any supermarket and you’ll find mince pies, lights and decorations already vying for attention.
You might instinctively recoil from the Christmas aisle, believing it to be too early to be selling Christmas snacks even as you stare longingly at them.
Supermarkets might be onto something as they are ensuring that their Christmas preparations are done early so that they can make the most of the full festive season.
Whether your business is about to boom or experience a Christmas lull, now is the time to prepare so that you can get the best possible start to 2026.
Why prepare for Christmas well in advance?
For most people, the holidays only enter the mind after Halloween.
That is perfectly sensible for home life, but immensely risky for business.
Christmas upends routines as schools close, staff take leave, suppliers slow down and customer habits change.
If you plan to shut or reduce hours, then you should check the financial impact now so you can prepare for any downturn in revenue.
Review upcoming supplier commitments, invoicing cycles and any seasonal credit lines so you do not return to unwelcome surprises.
Having a contingency pot to cover bills and payroll over the break buys peace of mind and lets you actually switch off and enjoy your Christmas dinner.
If Christmas is set to be busy for your business, then you should take planning equally as seriously.
Poor planning could result in the seasonal boom being mishandled and you could miss out on some vital avenues for investment and growth.
How to prepare for increased seasonal demand
While any upturn in revenue is exciting, you should be cautious about reading too much into a Christmas boom as a sign of future success.
Instead, careful planning allows you to take the extra business and transform it into working capital.
This can pave the way for more long-term growth if handled effectively.
One of the most important considerations centres around having enough staff to handle additional seasonal work.
If you plan to hire seasonal workers, do it early and get payroll set up straight away.
Seasonal staff must be paid at least the National Living Wage (NLW) or the National Minimum Wage (NMW) as appropriate and pay must be updated the instant they hit a new age bracket.
The current rates are:
If your business handles tips, ensure you follow the Employment (Allocation of Tips) Act 2023.
Staff are entitled to 100 per cent of the tips they earn and tips must not be used to make up statutory pay.
You will need a clear written policy setting out how tips are pooled and distributed.
Many firms use a tronc, a pooled tip system run by a named troncmaster, and if you do, make sure distributions are transparent, recorded through payroll and that everyone understands the arrangements.
How to make the most of the festive season
Practical planning is vital whether your business is set to be busy or quiet over Christmas.
Our team of experts are on hand to help you plan and prepare your finances accordingly so that you are not left in a challenging position when the New Year arrives.
Alongside this, we can help you manage any additional payroll compliance concerns that may arise as a result of seasonal work.
We work closely with you to understand the unique nature of your business and offer you tailored advice on managing the impact of Christmas.
Treat yourself to some financial peace of mind this festive season by speaking to our team today!
