The barrage of heatwaves and dry weather may make a person feel as though summer will last forever, but Christmas will arrive in a few short months.
There is a lot of work that goes into the festive period both for businesses that experience an upturn in revenue and those that face a quieter time.
Given the economic instability of the year so far, it would be best for businesses to consider how to prepare for the season now while there is still time to put plans in place.
Why do businesses need to start preparing for Christmas now?
As well as having a review of the Christmas playlist and a quick check to see if the tree will last another year, businesses should be taking practical steps to ensure that they will not be adversely affected by the festive period.
It may be apparent to businesses that face a decline in revenue during the festive period that plans must be made to brace for the downturn, but even those who are set for a boost could face challenges without early considerations.
Staffing costs are at the forefront of many business owners’ minds as these are often impacted by seasonal shifts in custom, particularly as this is the first year with the new Statutory Sick Pay (SSP) rules.
Handling the additional bank holidays alongside an uptick in requests for annual leave throughout December and January can present payroll challenges and threaten productivity if not planned out carefully.
This may also be coupled with the costs of Christmas parties or other activities that fall outside of the usual workflow and need to be accounted for.
Businesses that stand to benefit from a boost in seasonal traffic may need to bring on extra staff to handle the increased custom.
However, there are indications that businesses are struggling to find the resources for this vital seasonal shift.
It has been reported that, in July 2026, seasonal summer jobs were at their lowest levels in four years.
For businesses that would normally bring on more staff to make the most of the busier summer, a drop in hiring power may translate to lost revenue.
There is now growing concern that the same situation may be repeated at Christmas.
What should businesses be doing to prepare for Christmas?
The economic challenges that are impacting the agility of businesses at the moment may not be resolved by the time Christmas comes around.
Although there is the Autumn Budget happening on 26 October, there is no guarantee that measures announced there will meaningfully affect businesses in time for the end of the year.
Instead, it is better to review your current position and determine how you want the final few months of 2026 to be.
Getting expert accounting support is a vital part of this process, as we can work with you to understand your current budget and use financial forecasting to get a sense of how things may change.
Through this, it should be apparent whether you have money to invest in lining up your business for some festive growth or if you should be solidifying additional reserves to help you endure leaner times.
We can support you in determining effective ways of managing employment costs by ensuring that your payroll processing is fully compliant and able to adapt to seasonal work or sudden increases in holiday or sick pay.
For full support in getting set up for success over the festive period, speak to our team today.
