The holiday season is almost here and while it’s a welcome chance to recharge, it also brings one of the biggest risks to your firm’s cash flow. Invoices left unpaid on 20 December often sit untouched until well into the new year, leaving firms waiting weeks (or even months) for funds they needed yesterday.

Why the next few weeks matter most

The lead-up to Christmas is the last window where most clients are in “business mode.” Come late December, many shift into holiday mode, and payments slow down until late January. That’s why now is the time to:

• Follow up outstanding invoices
  
• Lock in payment arrangements
  
• Offer flexible options that make it easier for clients to pay before they switch off for the break

A few extra calls and reminders now can help avoid a cash flow squeeze in the first quarter of 2026.

A tougher year than most

2025 has been a testing year for small businesses across Australia and New Zealand. Rising costs, higher interest rates, and tighter budgets have meant even professional service firms with good systems are seeing longer delays in client payments.

The reality is, firms that don’t provide a range of payment methods (from card payments and direct debits to instalments and fee funding) are often pushed down the priority list by clients who pay the creditors that make things easier.

Why debtor management can’t wait

Across years of debtor data, one trend is consistent:
“The older the debt, the harder it is to collect.”

Once an invoice slips into the 90+ days overdue category, it’s usually there for much longer. That’s money that could be supporting wages, super, tax obligations, or technology investments heading into 2026.

How firms are protecting their cash flow

Many firms are turning to automated debtor management and payment platforms to stay ahead of the curve. Tools like FeeSynergy Collect are helping firms reduce debtor days, smooth out seasonal fluctuations, and give clients more flexibility in how they pay.

Beyond cash flow, these systems also support compliance with regulatory requirements (BECS, ACCC, APES, TPB/ATO, AML/CTF) and free up valuable staff time that would otherwise be spent chasing overdue accounts.

Looking ahead to 2026

The festive period should be a time to reset, not worry about overdue invoices. Taking steps now, whether it’s increasing your debtor follow-up or putting better systems in place, FeeSynergy can help your firm start the new year with confidence and stability.