When things don’t go to plan
Tax Compliance

When things don’t go to plan

When things don’t go to plan for cashflow in your business it is a nightmare. What to do? Natalie Parker, Director, MB+M identifies factors to focus on and actions you can take to prepare your business to exit Covid-19 in a positive position.


When you’re running a small business, things don’t always go to plan.   Preparing your business for difficult times will help you recover as soon as possible. 

The last 2 months has shown us that you never know what could be around the corner.    

As a business owner, there’s one key thing you need total focus on, keeping your business alive during these difficult times. It’s not all doom and gloom either. Withstanding the tough times sets a business to become a positive cash flow quickly when everything bounces back in the time ahead.

To assist you, we’ve created a list of 3 key actions we need to discuss with you. Here they are:

Minimise your tax bills before 30th June 2020

Tax planning may not sound exciting, but if you overlook it, you could incur a higher tax bill than necessary.  This impacts on your cashflow which may be critical to funding working capital, new investment or personal wealth.

Our first step is to review your business profits year to date and project what it might look like to year end.  Once this is complete, we review and explore strategies to reduce your tax, then contact you to set up a Zoom meeting, or phone call to discuss.

It is important to consider your potential tax liability prior to the year’s end.  Depending on your business position it may be possible to:

  • Vary your March tax instalment to nil
  • Access a refund of instalments paid year to date.
Maximise cash receipts from the Government Stimulus Package

Over the last 3 weeks information has flooded in on Federal and State government concessions aimed at financially helping small business to manage staff costs through COVID 19.  Now that the government has completed the legislations to define eligibility and process it is time to ask:

  • How does it apply to my business?
  • What do I need to do to access the support payments?
  • What information do I need to provide now and into the future?

Critical questions which MB+M can help you work through, thus assisting you to identify your options to ensure your business is accessing the best help available.

Understand your cash flow needs

There are many reasons you need to know your cashflow situation. First, you need to understand if you’re making money or losing it. That’s the most basic form of cashflow visibility. But there’s more to it than that.

If you can see your detailed cashflow, you can spot opportunities, or troubleshoot problems before they become too big.

If you’re seeing profit spikes during certain periods, you could:

  • Bring in more staff to help maximise those opportunities
  • Think of ways to cross-sell or upsell those customers
  • Consider marketing campaigns that will bring those customers back during slow times

If revenue is flat during certain periods, you could:

  • Run sales promotions
  • Experiment with different products or services
  • Reorganise staff schedules to lower your expenses during those times
  • Explore your online service / product opportunities
In Summary

Cashflow

Cashflow visibility is a strategic advantage. By understanding how revenue and expenses change from day to day you can tweak your business model to find what works best for your situation.

Money in and money out is the ultimate measure of business health and sustainability.

MB+M can help you put together a cash flow forecast and how to monitor and manage cost over these turbulent times.

Tax Planning

We highly recommend that you start your tax planning as soon as practical.  Given the turmoil of the last few weeks its best to understand your tax position now and plan for what is achievable for your business, with your available cash.  If you haven’t already been speaking with your adviser about starting your tax planning soon, please reach out and we’ll get the process started with you.

Thank you for your time to read this article.

Natalie Parker
Director


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