Summer on Long Island brings a surge in tourism, hospitality, and service activity — but it also brings a unique set of financial challenges. If you run a business that thrives during peak seasons and slows in the off-months, managing cash flow effectively is essential to long-term sustainability.
At Basso & Guida, we work with many local businesses — from restaurants and landscapers to boutique retailers and wellness professionals — and we know that smart seasonal cash flow management can make the difference between barely getting by and setting yourself up for year-round success.
Here’s how you can manage your seasonal cash flow more effectively this summer and beyond.
1. Know Your Seasonal Trends
Start by identifying your seasonal revenue cycles.
Look back at your past few years of income and expenses:
- When does revenue peak?
- When do expenses increase (staffing, inventory, etc.)?
- What are your low-revenue months?
This data allows you to forecast upcoming busy and slow periods with greater accuracy, so you can plan accordingly.
2. Create a Realistic Cash Flow Forecast
Use your historical data to create a monthly cash flow projection. Map out expected income and expenses for at least the next 12 months.
Make sure to:
- Account for seasonal payroll increases (e.g. summer staff)
- Anticipate supply and inventory needs
- Include fixed costs that don’t change when revenue drops
A forward-looking cash flow forecast helps you spot shortfalls before they happen — giving you time to plan instead of panic.
3. Build a Cushion During Peak Months
When business is booming, it’s tempting to reinvest every dollar back into growth. But the smart move is to set aside surplus cash during your busy season.
Consider:
- Saving at least 10–20% of peak-month profits
- Using a separate account for off-season reserves
- Paying down debts when cash flow is strong
This financial cushion will help cover expenses when customer traffic slows down.
4. Control Costs Year-Round
Even if your revenue fluctuates, many costs remain fixed. That’s why it’s critical to manage your overhead carefully during all seasons.
- Review vendor contracts and renegotiate where possible
- Track and categorize all expenses for better visibility
- Cut back on discretionary spending during slower months
Small cost reductions across multiple areas can add up to major savings.
5. Diversify Income Streams
Many service businesses can generate off-season income with a little creativity. Depending on your industry, you might explore:
- Offering gift card promotions during the holidays
- Creating year-round maintenance packages
- Selling online merchandise or gift sets
- Partnering with complementary businesses for bundled services
Diversified income helps level out your revenue curve — and keeps your brand top of mind year-round.
6. Work With a Trusted Advisor
Managing cash flow in a seasonal industry isn’t easy — but you don’t have to do it alone. A tax and accounting professional can help you:
- Monitor your financial
- Identify cash flow trends
- Build a sustainable off-season plan
- Optimize your tax strategy based on income swings
At Basso & Guida, we specialize in working with service-based businesses across Long Island. Whether you run a restaurant in the Hamptons, a landscaping business on the North Fork, or a boutique salon in Nassau County, we’ll help you stay profitable through every season.
Let’s Build a Better Year-Round Strategy
Want to prepare your business for a successful summer — and a stable off-season?
