For many SMEs, the Christmas and New Year period is the most stressful time of the year for cash flow. Sales often soften, while wages, public holidays, bonuses and supplier payments keep rolling in.
A fractional CFO helps business owners move from guesswork to clarity. Here are the key risks and practical steps to manage them, along with how the new Payday Super rules will change the picture.
The main Christmas cash flow risks
Common issues we see in Australian SMEs include:
- Slower receipts because customers are on leave and invoices are approved late.
- Higher payroll, with public holidays, penalty rates and leave loading, sometimes combined with an early pay run before Christmas.
- Fixed outgoings that do not stop, such as rent, finance repayments, subscriptions and ATO obligations.
- Lack of visibility, where decisions are made from the bank balance rather than a structured forecast.
Build a 13-week forecast
The single most important tool is a 13-week cash flow forecast, updated weekly.
It should:
- Project receipts under at least a base case and a conservative case.
- Include all outflows, including wages, super, PAYG, BAS, rent and any Christmas parties or bonuses.
- Highlight weeks where the bank balance will fall below a safe level.
Once this is in place, decisions about bonuses, new hires or early pay runs become grounded in numbers, not hope.
Tighten collections and plan pay dates
Two practical levers make an immediate difference.
1. Receivables
- Invoice promptly as work is delivered.
- Shorten terms, where appropriate, for habitual late payers.
- Use reminders and follow-ups before key staff head on leave.
2. Payroll and pay dates
- Map every pay run in December and January.
- Decide early if any pay runs will be brought forward, and model the impact on cash.
- Factor in leave loading and public holiday rates so there are no surprises.
Start preparing now for Payday Super
From 1 July 2026, Payday Super will require employers to pay super at the same time as wages, instead of quarterly. This will increase the frequency of cash outflows and remove the informal cash buffer that some businesses have relied on.
Owners should use the coming year to:
- Model super as if it were paid each pay cycle in their cash flow.
- Review pay frequency and ensure payroll systems can handle more frequent super payments.
- Set clear internal rules that treat super as a non-negotiable, high priority payment.
A fractional CFO can translate the rules into a practical plan that fits the business.
About our fractional CFO services
At Liston Newton Advisory, our fractional CFO service gives SMEs access to senior finance capability without the cost of a full-time CFO.
We help clients to:
- Build and run 13-week rolling cash flow forecasts, with a specific focus on the December to February period
- Design pay cycles, pay dates and bonus policies that match the business’s cash profile
- Prepare for Payday Super by modelling its impact and adjusting systems and processes
- Improve debtor management and collections, including terms, reminders and dispute processes
- Plan and negotiate funding facilities, and set minimum cash buffers and triggers
- Provide regular, board style financial reporting and decision support for owners
If you want to head into the Christmas period with a clear picture of your cash position, rather than a guess, our team can help you put the right structures in place.
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Book a free financial strategy session
A 90-minute strategy session gives you a clear plan.
- Get a better understanding of your needs
- We generate a detailed report from your strategy session
- Understand your priorities and next steps
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