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4 ways to manage your cash flow during the ‘summer slowdown’

Sunshine, the smell of barbecues, ice creams at the beach … there’s so much to love about summertime in Britain. But if you’re a business owner, chances are there’s one thing you don’t relish at this time of year: reduced revenue.

If your business experiences a dip in income during the summer season – particularly August – you’re not alone. With clients (and staff) going off on holiday, projects, productivity and profits can all take a hit – and this can have a serious impact on your company’s cash flow.

Here are four ways to combat the ‘summer slowdown’ and maintain a healthy cash flow this August:

  1. Practice good credit control. In other words, make sure clients pay you on time. Sounds obvious, doesn’t it? Yet, late payments are a major issue for the UK’s small business owners; analysis by accounting software firm Xero found that small businesses are owed on average almost £25,000 in late payments. So, this summer, get chasing those overdue invoices and perhaps send timely reminder emails for invoices that are reaching their ‘due by’ date.
  2. Take full advantage of creditor terms. If you’re one of those people who always pays invoices and bills as soon as they come in, good for you. We bet your suppliers love you! However, when income slows down, it’s a good idea to slow down your outgoings wherever possible. This doesn’t mean paying late. It just means paying on time rather than early.
  3. Delay big purchases if you can. You’d be surprised how many business owners mis-time their bigger purchases. Whether you’re planning to splash out on new equipment, upgrade vehicles, or invest in training, try to hold off until income has returned to normal post-summer levels. Your cash flow will thank you for it.
  4. Ask your bank for a short-term overdraft extension. If you’re in negative cash flow as a result of the summer slowdown, a short-term extension to your overdraft may help to ease the strain. Talk to your accountant about whether this is the right move for your business.

Concerned about your cash flow? The team at Jupp Castle is on hand to help. Get tailored advice on boosting your cash flow this summer – and beyond.


At Jupp Castle, we offer accountancy, taxation and financial advisory services to a wide range of businesses and individuals. Our services cover everything from payroll to pension investments, personal tax returns to Charity Commission filing.

We pride ourselves in offering a personalised, friendly service that takes the jargon out of accountancy.
Whatever financial or accountancy service you are looking for, Jupp Castle has the right expertise for you.

All our accountants are professionally accredited with many years experience across a wide range of businesses and individuals.If you’d like to discuss any of your accountancy or financial needs, please give us a call on 01252 84868 or contact us through the online form.

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