With JobKeeper payments set to end in less than 100 days, businesses need to begin planning for the future.
The last JobKeeper payment is scheduled for the fortnight ending on 27 September 2020. The Australian Bureau of Statistics (ABS) estimates that 72% of businesses have experienced a hit in revenue and 73% have accessed support measures such as the JobKeeper payments.
With these support measures and other government assistance likely to end at a similar time, businesses will need to rely on themselves to stay afloat. By overlooking the importance of forward planning, business owners risk being unprepared for what the future may hold.
Here is a checklist that businesses can use to plan for when government incentives decrease:
Have your staffing needs changed? The changed environment may mean you need more or less staff, or perhaps new or repeat training of current staff is required.
- Revenue streams
Will your current revenue streams recover or have new streams and opportunities become available?
- Tax obligations
Are funds available when tax is due?
- Deferred liabilities
If you have deferred liabilities such as your mortgage or rent repayments, will you be able to meet these once payments are reinstated?
- Superannuation guarantee
Is there enough money available to meet the next superannuation payment?
- Personal guarantees
Are any personal assets at risk such as personal savings, residential properties or a car?
What is your current cash flow like and how is it predicted to be after the stimulus packages end? Consider getting a cash flow forecast to have some insight into what is coming cash flow wise.
How are you feeling?
This is another often overlooked consideration. COVID-19 is an unprecedented global pandemic which has changed the lives of many, individuals and businesses alike. Does your current business structure or perhaps even business itself feel like you have lost your passion?
How can we help?
We can help you put together a post-pandemic plan. Our industry experts in business advisory can help you prepare and understand the ever-changing landscape.
Please do not hesitate to get in touch with us via your Banks Group representative, (03) 9810 0700 or firstname.lastname@example.org if you need any assistance.
This article is intended for general discussion and is not intended to represent specific advice. Banks Group shall not be responsible for any entity that acts on any of the comments in this article without first obtaining specific advice from Banks Group.