Today’s blog is the fourth and final in our four-part series aimed at providing business survival tips during Covid-19. Today’s three tips focus on reaching out for help and utilising all the resources available to your business – whether that be aid from Government, financial institutions, or finance professionals.
Covid-19 has had a significant impact on the Australian economy and on Australian businesses. We encourage you to read the tips below and use this period as a catalyst for growth and business improvement.
Government Help
It is critical that during these tough times, you are keeping up to date with both State and Federal Government schemes and grants. Bills continue to pile up and many businesses are struggling to remain profitable and cash flow positive. Thankfully, there is Government assistance and the survival of Australian businesses is of the highest priority.
To assist businesses, Federal and State Governments have offered numerous initiatives including a cash flow boost via BAS returns, a moratorium on evictions, reduced payroll expenses through the JobKeeper scheme, payroll tax relief , temporary flexibility on insolvency rules, low interest loans, holiday on loan repayments, land tax breaks, increased asset write-off threshold, early release of superannuation and other small business grants.
Alternative Lines of Credit
Business owners should be continually assessing the economic landscape and ensuring there are lines of credit available for their business to assist with cash flow. The Covid-19 pandemic is an opportunity for business owners to build strong relationships with different financial institutions and find alternative lines of credit, even one such as investor funding.
Business owners may attract investors or win favour with banks by highlighting business strategy and outlining cash flow forecasting, giving potential investors and banks clarity and comfort on what the future of the business will look like and whether it is worthy of their funds. Building trust is extremely important, especially during uncertain times.
Seek Advice from Finance Professionals
We advise business owners to reach out for help at the best of times and more so during volatile periods. Finance professionals are here to help, can add real value to your business and most importantly add clarity to your financial position now and into the future.
Areas that will help guide you through the current climate and provide you with financial clarity over the coming period include:
Bookkeeping – it is imperative you have access to accurate and timely accounts so that you have a grip on accounts payable, accounts receivable and payroll at all times.
Budgeting and Reporting – Good financial strategy will include budgeting, planning, reporting and analysis. Your CFO should provide you with forward thinking and innovative solutions to close missing links and allow seamless and clear decision support to your business.
Tax and Compliance – Professional tax advisors should ensure that all compliance is up to date, minimise the risk of ATO audits and align your tax structure with your goals.
Financial Insights and Advice – Your business should have expert commercial and financial support focusing on its performance, finding opportunities, tracking growth, growing cash and being proactive in decision making. Cash Flow Forecasting is an important element in your business and will help with understanding your future cash flow needs.
Government Schemes and Grants – Federal and State Governments are currently helping, and it is important that you be made aware of what schemes are applicable to you and your business. Make sure you apply before it is too late.
Technology and Business Intelligence – Amongst all that is on offer to businesses, this is one area that can change the landscape for you, for now and well into the future. Research the quickest and most cost-effective ways to deliver accurate and reconciled data and focus on a dashboard of your key metrics to drive informed decision making – valuable and up to date information at your fingertips.
Conclusion
It is more important than ever for business owners to reach out and take the help that is available, whether that be from Government, financial institutions or finance professionals – business owners must stay educated to maximise their chances of survival and push forward to grow successful businesses.
Let Us Help
If your business has a turnover of over $1 million, ABJ Solutions is offering a complimentary 1 hour meeting to help answer questions and model critical decisions with you. Get in touch with us today so that we can help guide you through these challenging times.
