Budgeting for Seasonal Peaks in Your Industry or Business

Catherine Stork
Sep 4
3 min read

For many small and medium-sized businesses, the quieter summer months or post-Christmas slowdown can be a challenge.

But just as important (and sometimes more stressful) are the seasonal peaks when business ramps up. In fact, according to the Federation of Small Businesses (FSB), around 60% of UK SMEs report significant seasonal sales variations. While higher sales can be exciting, without the right planning, they can just as easily put pressure on cash flow and resources.

Just as we recently explored in our blog on How to Keep Your Business Finances on Track During a Quiet Time, planning for both the highs and the lows is key to keeping your business stable year-round.

In this blog, we’re sharing practical tips to help you prepare for seasonal peaks, make the most of the opportunities, and keep your finances steady throughout the year.

1. Know Your Numbers

The first step is to understand your seasonal highs and lows.

Look back at last year’s accounts. Which months brought the most sales? When were your costs highest?

For example, retailers see December sales rise 30–40% higher than an average month (according to the British Retail Consortium). Meanwhile, hospitality often sees its busiest trading period in the summer, while the construction industry typically peaks in spring and summer months when projects move forward.

Using your accounting software (we recommend Xero) to run reports across the past few years can help you forecast what’s ahead.

This kind of visibility makes it much easier to plan cash flow, staffing, and stock levels without nasty surprises.

2. Plan Cash Flow for Busy Periods

A seasonal boom usually means spending more before you start earning more.

Let's take retailers, for example. They often spend 25–30% of their annual marketing budget in the three months before Christmas, covering advertising, promotions, and stock.

Cash flow forecasting can help you map out what money will be leaving your business before the peak. So you know whether you need to adjust spending, chase invoices earlier, or build up reserves.

It’s also wise to plan for tax at the same time. With Corporation Tax and VAT deadlines never too far away, early preparation prevents a busy sales month being followed by a stressful cash shortfall.

3. Manage Resources

When demand spikes, you often need more hands on deck. This might entail taking on temporary workers, paying overtime, or training up existing staff for new roles.

According to ONS data, the UK hospitality industry alone employs an additional 100,000+ seasonal workers each summer. That’s a huge cost increase, and it’s one that needs to be factored into budgets well before the busy season starts.

By forecasting staffing needs early, you’ll avoid the panic of last-minute hiring and keep payroll costs under control.

4. Build a Buffer for the Unexpected

Even when sales are booming, unexpected costs can appear. Equipment breakdowns, supplier delays, or staff illness can all disrupt operations. Without a financial buffer, businesses can quickly find themselves struggling, even during their most profitable months.

We recently explored this in our blog Why Building Your Emergency Fund is Crucial for Your Small Business. Setting aside even a small emergency fund (£1,000–£3,000) can give you breathing space to handle problems without derailing cash flow.

5. Don’t Lose Sight of Profitability

Busy seasons often mean higher sales, but not necessarily higher profit. Increased spending on stock, energy bills, staffing, and logistics can all eat into margins.

That’s why it’s important to regularly review your gross and net profit figures during peak periods. Are your higher revenues actually translating into more money in the bank?

Working closely with your accountant can help you spot when costs are creeping up and ensure you’re making the most of seasonal highs, not just working harder for the same returns.

Seasonal peaks don’t have to be overwhelming. With forward planning, smart cash flow management, and the right financial buffer, they can become a springboard for growth rather than a source of stress.

Need a helping hand with reviewing your numbers and plan ahead? Get in touch today with Catherine on 01423 431 889 or email catherine@bctaccountants.co.uk for your FREE consultation call.