The summer months - and August in particular - is peak holiday season as staff take well-earned breaks in warmer climes and coincide breaks with school holidays.

But for entrepreneurs struggling to run a business during difficult economic conditions, ensuring the company can still function on a reduced staff is no easy matter. Staff absence at client organisations can also have an impact, for example on your ability to get paid for goods received or services performed.

According to the Institute of Chartered Accountants in England and Wales, the key is to ensure staff know what they are expected to do before they depart and to make sure a colleague is at least picking up important correspondence during their absence.

"This year, with credit being stretched because of the credit crunch, it is essential for firms to examine their debt collection and bill-paying procedures, and ensure proper safeguards are in place," said Clive Lewis, head of SME issues at the Institute of Chartered Accountants in England and Wales (ICAEW).

"Planning ahead can help minimise disruption and keep the cash flowing."

The ICAEW offers the following top tips for businesses to manage while staff are on holiday:

• Getting cash into your business is as critical as paying out. At holiday times you will have staff away, but so have your customers. Plan ahead to avoid payment delays
• Make sure invoices are still paid on time otherwise you could incur penalties
• If the person authorising payment is away, make sure that someone else can authorise it in their absence
• Make sure staff provide a proper handover and that enough time is given to it before people go away
• If you deal with businesses abroad make a note of their national holidays
• Make sure that staff use their email out-of-office reply and that there is an alternative contact given
• See if staff are happy for others to have access to view their emails. This may help avoid any nasty surprises when they return
• Debrief people when they get back: this will make them feel important to the organisation
• Once people have returned from holiday, give them time to adjust. However, try to make sure that people regain their productivity quite quickly
• Suggest that staff book their next holiday soon after they get back: this will give them something to look forward to and will also help you plan ahead