Cashflow is the money moving through your business: what arrives in the bank, what must leave it, and when. Profit is important, but it doesn’t guarantee you can pay this week’s wages, rent, tax, suppliers or loan repayments. Seasonal cashflow management helps you plan for quiet months while trading is strong.
For many small businesses across Aotearoa New Zealand, the year includes both busy and quieter periods that change your cashflow. Your cashflow might be affected by weather, project cycles, harvests, visitor demand or clients’ payment habits.
Variation in cashflow doesn’t necessarily signal a problem. The opportunity is to understand your business’ pattern and plan around it with confidence.
A cashflow forecast is a practical forward view of what you expect to receive and pay, and when. A spreadsheet or accounting package can work well.
Include your opening bank balance, expected customer payments, wages, rent, stock, tax, loan repayments and other regular costs. Then calculate what should remain at the end of each month or week.
Look back at prior years if you have them. Which months are consistently stronger or weaker? Which costs rise at particular times?
If you are a newer business, industry benchmarks, supplier discussions and advice from an accountant or Business Mentor can help you make sensible assumptions. Consider a realistic scenario alongside a more cautious one. The value lies in seeing potential pressure early, not in perfectly predicting the future.
To map expected income and costs, you can also use the free Business.govt.nz cashflow forecaster.
Peak trading can give you an opportunity to prepare for quieter periods. Setting aside some of the cash received in a strong month in a separate, accessible business savings account can help cover known off-season commitments and unexpected costs.
A cash buffer can help you make more deliberate investment, marketing and growth choices when trading slows.
Stock deserves particular attention. Having enough to meet customer demand matters, but excess inventory can absorb cash that may be needed for wages, supplier payments or tax.
Review buying patterns and consider smaller or more frequent orders with suppliers where this suits your business.
The timing of customer payments can make a big difference, particularly in quieter months. Clear payment terms, accurate invoices and invoicing as soon as work is completed all support a steadier cash position.
For longer projects, staged payments can better reflect the work and costs involved. This means you are not waiting until the end of a project to receive full payment.
A simple, consistent follow-up process also helps. Keep a record of outstanding invoices, send a polite reminder shortly after the due date, and follow up personally if needed.
The aim is to make payment easy and expectations clear. Understanding how key customers usually pay can also make your cashflow forecast more realistic.
Business.govt.nz offers practical advice on getting paid on time. The guidance includes clear invoices, prompt reminders and payment plans for longer projects.
Sometimes a forecast will show a temporary gap despite good planning. A temporary cash low can be normal in a seasonal business.
An overdraft or other short-term facility may help bridge a known, short-lived cash gap. Longer-term finance may be more suitable for a significant asset purchase.
The important point is timing. Conversations with a bank or adviser are usually more constructive when they happen before cash is under pressure.
It is also worth separating a temporary seasonal dip from an ongoing cash shortfall. If your business is regularly unable to pay suppliers, tax obligations, wages or other employee costs on time, review your pricing, margins, spending, payment terms or overall business model with professional support.
Cashflow management works best as a regular business habit, rather than an annual exercise. A monthly review may suit many NZ small businesses, while a weekly check can provide greater clarity during a known quiet period or when cash is tight.
Compare your forecast with what actually happened. This helps you improve future decisions and build a clearer view of your business’ seasonal pattern.
Small, consistent actions can make a real difference:
These actions can turn seasonal variation from a source of stress into a manageable part of running your business.
You don't need to make every growth decision at once. Where you can, test an idea before you make a big investment.
For example, if you want to offer a new service, ask existing customers whether they'd use it. If you need more support, trial a contractor before you create a permanent role.
And before you start your trial, decide how you'll measure success and when you’ll review the data so you can decide whether to continue, adjust or stop.
If you want support to review your cashflow forecast, pricing, cash-flow forecasts or plans for quieter months, register for a Business Mentor. A Business Mentor can help you step back from urgent issues and focus on practical next steps for your business.