5 Essential Business Finance Tips for Small Business Owners Taking Vacations

“Stress can lead to conditions such as depression and anxiety disorders,” according to research.

As a small business owner, it’s long-lived the days of multiple weeks of paid vacation time with zero worries. Balancing the need for time off with the financial demands of your business can be challenging. However, with careful planning and smart business finance strategies, you can enjoy your vacation without worrying about the financial stability of your business.

Imagine this:

You are at the poolside with a fruity drink garnished with an umbrella. How cool, chill, and relaxed is that?

But then, as a business owner, you cannot stop worrying whether your business can be financially stable while you are at the poolside having that fruity drink.

That is the absolute last thing you want to come between you and the much-needed summer vacation! I want you to enjoy your poolside, fruity umbrella drink visions, so here are my 5 tips to keep your business financially stable while you’re enjoying your summer vacay!

 

Plan Ahead with a Quarterly Business Financial Plan

Effective business finance management begins with planning. Your quarterly business financial plan should account for times when you won’t be working. This financial plan should structure your revenue in such a way that ensures you have enough cash flow coming in to cover times when you aren’t working.

Planning ahead also allows you to potentially adjust your workload as needed so you can indulge just a bit more while on vacation without stress.

Here’s how to plan ahead:

1. Create a Quarterly Business Financial Plan: Include periods when you won’t be working and estimate the revenue needed to cover these times.
2. Adjust Your Workload: Before your vacation, take on additional work to boost your income and create a financial cushion.
3. Set Clear Financial Goals: Know exactly how much you need to earn before your vacation to maintain cash flow.
4. Schedule Work in Advance: Plan your tasks so you can finish critical projects before your vacation.

 

Create a Vacation Spending Plan

Having a spending plan inherently forces you to consider exactly what you can afford to put aside for vacation. It gives you some guardrails so you can mitigate your anxiety knowing that as long as you don’t spend more than x, you’re in great shape. In short, a well-thought-out vacation spending plan is a key component of sound business finance management. It helps you determine what you can afford to spend without negatively impacting your business finances.

Steps to create a vacation spending plan:

1. Estimate Vacation Costs: List all potential expenses, including travel, accommodation, food, and activities. (Learn the five business expenses small business owners typically underestimate here.)
2. Set a Budget: Decide how much you can afford to spend without straining your business finances.
3. Save in Advance: Put aside money each month leading up to your vacation.
4. Stick to Your Budget: Monitor your spending during the vacation to stay within your limits. (For tips and strategies to avoid overspending, read this blog.)

 

Automate Invoice Sending & Recurring Payments

Automation is a powerful tool in business finance management. Being on vacation shouldn’t prevent you from collecting invoice payments. Your goal is to keep the cash flowing while you’re away.

To automate, follow these steps:

1. Choose an Invoicing Software:  I 100% recommend setting up automated invoice sending and reoccurring payments where possible. I personally use and like QuickBooks for two main reasons:
   1a. Your cash gets deposited to you quickly, within 1 business day, vs. stripe which can take up to 4 business days.
   1b. You can set up both reoccurring invoices and reoccurring payments. That way invoices are sent to your clients automatically and you can charge customers automatically on a recurring schedule.
2. Set Up Recurring Invoices: Schedule invoices to be sent to clients automatically.
3. Enable Recurring Payments: Allow customers to be charged automatically on a recurring schedule.
4. Monitor Payments: Check your software periodically to ensure payments are processed correctly.

 

Set Up Business Auto Bill Pay

Setting up auto bill pay ensures all of your invoices get paid on time. As much as you want to get paid on time from your customers, being on vacation isn’t a reason to not pay others on time. Plus, late payments can sometimes come with a hefty fee.

Here’s how to set up business auto bill pay:

1. List Regular Expenses: Identify all recurring bills such as utilities, rent, and subscriptions.
2. Choose Auto Pay Options: Use your bank or service provider’s auto-pay features.
3. Schedule Payments: Ensure payments are scheduled before their due dates to avoid late fees.
4. Monitor Your Accounts: Regularly check your bank statements to confirm payments are processed.

 

Utilize a Business Credit Card

A business credit card can be a valuable tool in your business finance toolkit. Not for the reason you’re likely thinking! I’m not recommending having a business credit card so that you can use it on your personal vacation expenses. I’m recommending you have a business credit card so that you can start accruing points that you can use on your vacation! Think of it as using your accumulated points as your special summer bonus to splurge on yourself with different treats like dinner, clothes, airline upgrades, excursions, gift cards, or whatever your heart desires. The perks of business credit cards are one of my favorite parts.

Steps to maximize business credit card benefits:

1. Apply for a Business Credit Card: Choose one with good rewards and benefits.
2. Use for Business Expenses: Charge regular business expenses to the card to accumulate points.
3. Redeem Points for Vacation: Use accrued points for travel, dining, or other vacation-related expenses.
4. Pay Off the Balance: Always pay off your balance in full to avoid interest charges.

Those are my tips!

By implementing these business finance strategies, you can relax and enjoy your vacation without the constant worry of how your business is doing. Proper planning and smart financial management will keep your business running smoothly, even while you’re poolside with a fruity drink in hand.

Now go enjoy that vacation you have been planning for a while now and stop worrying about the financial state of your business! And in the meantime, download your free accompanying worksheet here and start taking action now.