The Festive Season: Busy, Brilliant… and Risky

5 Things to Check in Your Restaurant Finances Before Christmas

For most restaurants, December is the busiest (and potentially most profitable) month of the year. Bookings are up, average spends are higher, and everyone’s in the mood to celebrate.

But it can also be the most financially dangerous month if you’re not careful. Increased demand means higher costs, extra staff, supplier pressures, and VAT bills lurking around the corner in January.

Before the Christmas rush kicks in, take a moment to look under the hood of your finances. These five quick checks will help you protect your cash flow and avoid a painful New Year hangover.

1. Check Your Cash Flow Forecast (and Stress Test It)

Cash flow, not sales, is what keeps your doors open. Even a packed restaurant can run out of money if payments don’t align with expenses. Review your cash flow for the next 6–8 weeks include expected takings, supplier payments, VAT, and payroll. Then, run a “what if” scenario: what happens if a big group cancels or snow hits sales for a week? Finally use your Operating Expenses and Staff Pay accounts to predict if your balances will comfortably cover these fluctuations.

2. Review Supplier Payments and Stock Levels

Christmas means bulk orders and higher stock levels, but overordering can crush cash flow.

To ensure your business is prepared, review your supplier terms and check when payments fall due. Talk to suppliers early, as some may even be willing to extend terms if you order ahead. Discuss bookings with your kitchen and operations team, and avoid purchasing any excess stock that won’t sell after Christmas (especially perishable or seasonal items).

Finally, use your “Supplier” or “Cost of Goods” allocation in your Profit First setup to make sure your purchases stay in line with sales.

3. Plan for Staff Costs and Holiday Pay

You’ll likely need extra hands for December service, but that also means extra payroll and holiday pay at year-end. Check that your “Staff Pay” account has enough to cover December wages and early January payments, and make sure holiday entitlement is up to date to avoid unexpected payouts. If payroll is likely to hit before your festive takings clear make sure you have a plan for the timing gap.

4. Put VAT and Tax Money Safely Aside

VAT and Corporation Tax bills can be a nasty surprise after the holidays. If you’re already using Profit First this will be a no-brainer - but if not - move VAT into a separate account as soon as it’s collected (it’s not your money) and review your profit so far and estimate any upcoming Corporation Tax to avoid scrambling later.

Profit First makes this simple: Regular, automatic allocations mean no more “where did the VAT money go?” panic in January.

5. Check Your Own Pay and Profit

Amid the chaos of Christmas, it’s easy to forget about your financial wellbeing. Are you paying yourself consistently? Is your business genuinely profitable, or just busy?

Review your Profit and Owner’s Pay accounts, and ask yourself whether they’re building up, or being raided for shortfalls? If not, it’s a sign your pricing or cost structure might need tweaking before the New Year. Finally, take a small “profit distribution” at year-end. Even a modest one helps reinforce that your business exists to reward you, not just survive.

A Smooth Christmas Starts With Financial Clarity

The festive season should be your most rewarding time, not the most stressful.By checking these five areas now, you’ll go into December with confidence, knowing your cash flow can handle the peaks (and the January dip that follows).

Want help preparing your restaurant finances for the festive rush? Sign up today and let us help you implement the Profit First system in your restaurant.