With the “new normal” continuing to evolve in Victoria, most business owners are feeling frustrated or concerned by the lack of certainty the future holds. We’re living it too and understand the significant challenges and stress you may be experiencing.
Our focus for the next few months is to help and support our clients through these uncertain times and reassure you that there are a number of steps you can take to preserve your business as events unfold.
Adapting your business to a changing environment is important, and the key is to focus on what you can do, rather than what you can’t do or what’s out of your control.
For many of our clients, the priority is preserving cashflow and minimising expenses rather than business growth.
May we suggest you consider what you can do in terms of these five business matters:
1. Controlling your cashflow
Understanding the peaks of business expenses and customer demands that are unique to your business is important for understanding your cashflow needs. We can assist with cashflow forecasting by helping you to use your business financials to model real-life scenarios that highlight your cashflow position so you may identify the actions that will improve cashflow.
Other simple steps such as implementing automatic invoicing and reminders, syncing your suppliers credit terms and your own customer payment timings or offering discounts for prompt payments can also contribute positively to cashflow.
Currently many business owners have concerns about the ongoing solvency of their business. If this is your situation, please contact us. We can help you identify warning signs, help implement a cashflow management plan and if necessary connect you to professional support that can help you through the challenging times.
2. Managing your obligations
If your revenue is likely to reduce in the coming weeks, it’s important to review your expenses and obligations accordingly. We can help you prioritise your expenses and that includes planning payment of your tax instalments. We’ll consider all your circumstances, provide cashflow forecasting and negotiate with the ATO on your behalf.
We can also explore any tax incentives that may benefit your business such as managing accelerated depreciation deductions and making the most of the expanded instant asset write off initiative.
3. Staying connected
Stay connected with your customers. An up to date website (consider adding online payment options if you haven’t already), regular social media and email communication will help you to stay in touch and will be valued by your customers. Speaking from our own experience, we’ve remained in regular contact with our clients throughout this time, providing the facts as we know them and other helpful business information. We’ve received a lot of positive feedback from our clients (and others) who have valued our straightforward assessment of what has been constantly changing impacts associated with COVID-19.
And don’t forget about communicating with your employees.
Keeping your team up to date about changes to your operations, adapting to COVID restrictions or meeting customer demand is important, not just for morale, but to help them understand your overall business direction during uncertain times.
4. Consolidating your position
Take advantage of the time you may have available now to work “on” your business, rather than “in” it. Re-consider your business goals and strategy, including your own personal financial goals. Charting a course for the way forward is vital as you head towards business recovery. It’s okay if you don’t have all the answers or the business management knowledge to set your strategic direction, there are others who do, and now’s the time to reach out and get the help and support you need to weather this storm and emerge better for it on the other side.
5. Consider Stimulus and Support Available
Available stimulus packages and business support initiatives may represent significant support for your business. The JobKeeper extension announced on 21 July 2020, extends the JobKeeper Payment until 28 March 2021 to support businesses which continue to be significantly impacted by COVID-19. The Victorian Government, Business Support Fund – Expansion Program may assist your business, with applications for the Business Support Fund – Expansion Program extended until 14 September 2020. Businesses that have previously received the original $5,000 grant do not need to reapply.
We’re here for you
We genuinely want to help business owners get through the coming months. We understand the significant challenges and stress you may be experiencing.
Please pick up the phone if you have concerns about your business or you simply need to discuss options for moving forward. Phone us on 03 9708 8801 or email info@rvpartners.com.au.
At Robinson Voss Partners, we have over 40 years combined experience and expertise in specialised tax issues, accounting and business advice. We are single-minded in our goal to help clients achieve business success and personal prosperity.
General Advice Disclaimer: The information contained within this document is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Robinson Voss Partners (RV Partners) strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.
