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Mark is a guy you want in your corner. He’s not only full of industry experience, but he’s someone who truly cares about his team and his clients.Mark loves nothing more than helping people realise their ambitions, giving back to the community and coming home to his beautiful family at the end of the day.

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Mark Williams

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02 9884 7100

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https://www.imagineaccounting.com.au

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At our Chatswood accountant firm, we have spent the last eight weeks operating at peak capacity, helping clients deal with the impact of COVID-19.

Our goal has been to help each business stay afloat during this time and show them how to claim every cent they are entitled to. This has included applying for small business grants and JobKeeper payments.

Now things are calming down somewhat, we want to share some of the recommendations our Chatswood accountants have for small businesses.

While everybody’s circumstances are different, these are our suggestions for getting your business through this challenging period.

1. Know your current financial situation

Before you know where you’re headed, you need to know where you are. No matter how bad it is, if you have a clear picture of what you owe, what’s owed to you and how your business generates income, you will be able to make a plan.

Hopefully your business already has cloud-based systems which share a real-time financial dashboard. Our Chatswood accountants have been leveraging this information to help small business owners make data-based decisions about which steps are most important.

2. Seek government payments & assistance

Several financial stimulus options are open to businesses during COVID-19. This includes the JobKeeper payments for staff and sole traders, lump sum grants and asset write-offs. There is also a possibility of deferring tax payments with the ATO.

If you’re feeling stressed due to COVID-19, you don’t have to wade through these confusing options yourself. Speak to our Small Business Accountant in Chatswood (you don’t have to live in the area to work with us) and we can quickly find out what you’re eligible for and how to access the funds.

Even if your income hasn’t stalled completely, you may still be able to claim based on year on year data. It’s worth investigating what your business is entitled to as we are by no means nearing the end of this crisis and some businesses could find themselves impacted over the coming months.

3. Contact your suppliers and lenders

If you owe money, now is a great time to revise your repayments. Banks and lenders are being very understanding right now. There may be options to defer or reschedule the amount you pay. The same goes for insurers. If you are experiencing financial hardship, you could potentially defer your fees.

Your suppliers may be able to discuss a payment plan. They could also be interested in dropping their price for upfront payment. Be proactive now to potentially save thousands.

4. Talk to the people who matter to your business

This covers the customer care, HR and stakeholder relations banners.

It is important to communicate with the people associated with your business. Customers need to know if you’re open. Staff need to know if they will have a job to come back to, or a job next week. It is important for stakeholders to know what’s going on.

You don’t have to share every detail but keep in touch regularly with updates. This will be remembered for many years to come, especially from staff who are concerned about their paycheques.

Try also to respond to the people who get in touch with you. If it’s all too much for you as a business owner, delegate this to someone on your team.

Even if it is bad news, people really appreciate being kept informed. In terms of customer relations, staying in touch is a great way to remind your clients to come back the moment you’re up and running again.

5. Reduce amounts owing to your business

While many businesses are in a tight spot right now, the priority is to keep yours afloat. This means calling the people who owe you money and getting a clear idea of when they will pay.

Overdue payments are a priority. Our small business accountant in Chatswood often suggests creating a payment plan with monthly instalments for those who can’t manage a lump sum.

During COVID-19, requesting upfront payments may make better sense for your business if you don’t already operate this way. It saves you a great deal of stress and gives you a clearer picture of your true financial status.

6. Find ways to increase cash flow

Many businesses have switched their operating model or even their services during COVID-19. Brewpubs started delivering six-pack and hamburger combos. Theatre set manufacturers began selling flat-pack desks. Beauty salons launched online stores. Gyms and yoga teachers created fantastic online training options.

Our Chatswood accountant has spoken to many businesses about creative ways to make money during COVID-19. You could make a temporary change or surprise yourself by discovering an opportunity that delivers strong profits for your business. Just make sure you are licenced to operate in a new way and you aren’t breaking any rules.

7. Beware of the catches

While all the Government grants are helpful, if your business is looking to borrow a large amount of money in the near future, putting your hand out for financial help won’t be a good look on your application.

The same goes for dipping into your superannuation. It may feel urgent but speak to your Chatswood accountant or your financial advisor about the long term implications. Be aware of the impact this may have on your borrowing power.

Having the support of someone who lives and breathes small business finance can make a huge difference to your business during COVID-19. If you’re feeling stressed about income or finances, talk to us about our accounting solutions today.