COVID-19 Help For Business

The coronavirus has been labelled the biggest global crisis for three generations and has stopped the economy in its tracks. Thousands of businesses have gone into hibernation and self-isolation rules have changed the way we live, work and play.

Every business has been impacted by COVID-19 and while a few industries have had ‘wins’ (like supermarkets, manufacturers and suppliers of cleaning products and toilet paper etc.), the majority of industries have suffered a decline in revenue. Basically, we are seeing businesses models:

• under strain for the long term (e.g. international air travel)
• under short term strain but are expected to recover quickly after the lockdown is over
• a business model that has not been affected much or that has been able to adapt quickly to the lockdown

This is obviously unprecedented and there’s no instruction manual to help business owners navigate their way through the perfect storm. The Government Stimulus Packages and Job Keeper Scheme are designed to help businesses and their staff survive. At the foot of this page is a list of grants, subsidies and allowances your business might be able to access.

One of the most important things for anxious business owners is to have a strategy or plan to work through this crisis. Having a clear game plan provides a sense of direction and we have put together the following checklist to help our clients. If you need any help with these steps please don’t hesitate to contact our office.

1. Update Your Financial Records - this will give you access to some key figures including your wages and profitability. Up to date financial statements allow you to make informed decisions regarding eligibility for government assistance - see table below and some criteria includes a percentage decline in turnover. Current financials will also help with tax planning and make decisions around tax deferral options.
2. Prepare a Cash Flow Budget - it’s never easy to forecast the future but there’s never been a more important time to prepare a cash flow forecast particularly if your business has gone into hibernation or suffered a large drop in revenue. It’s all about estimating the business’ cash position over the next few months and you’ll need to factor in any government grants including JobKeeper payments. It will help identify the need for finance including when you’ll need it and how much.
3. Apply for Government Stimulus Incentives - Federal Government Cash Boost of between $20k and $100k for eligible businesses. See table below and if eligible, include them in your cash flow forecast.
4. Apply for State Government Subsidies & Grants - state by state it varies but for example, Victoria and NSW are offering $10k payments for eligible businesses. These figures can be added to the cash flow forecast.
5. Job Keeper Entitlements - with updated payroll records you can assess any entitlements and those figures can also filter through to your cash flow forecast.
6. Understand the Loan Concessions provided by the banks if you need to apply.
7. Consider eligibility for Tax Office Deferral Options
8. Marketing Plan - this pandemic has changed the way we live, work, communicate and do business. Thanks to the isolation rules, people are glued to their computers and smartphones.  The shift online then begs the question, what are you doing about your online presence? Could it be time for a website review or makeover? Is it time to ramp up your social media activities? What are your competitors doing in this environment? During an economic downturn, you’ll find that some of your competitors will close down or slow down their marketing efforts. This presents an opportunity to increase your market share, but you need to have a post pandemic plan.

COVID-19 RESOURCES AND ASSISTANCE FOR SMALL TO MEDIUM BUSINESSES

The information in this table is general in nature and does not constitute advice. Every business is different and a number of these grants and subsidies are subject to qualifying conditions including a percentage decline in turnover as a result of COVID-19. Note that the ATO and Government (both state and federal) continue to issue updates so for advice regarding how these concessions might apply to your business and how to access the benefits, contact us today.

ASSISTANCE FOR BUSINESS OWNERS

As always, don't hesitate to contact us if you have any queries in relation to the above and head to our Blog page to view more tools and resources available to help you including:-

• JobKeeper Payment
• Government Stimulus Package
• Detailed Action Plan Checklist
• How to Recession Proof Your Business