Can you believe we have now passed the one-year mark of the pandemic!
Congratulations to everyone for being so adaptable and resilient. There are so many ways to describe the year – difficult, challenging, confronting, scary, rewarding….. There is obviously a way to go but trying to be an optimist – I think we can see some light at the end of the tunnel.
Have you heard the term now being used – “Covid-normal”. This is how the Government is referring to the current period as we transition away from intensive disruption and Government support to a more normal economic environment (while still acknowledging the many ways we are being impacted).
The most relevant point for many is that the JobKeeper subsidy has now reached an end. This was a lifesaving program which kept many businesses operational and allowed many people to stay employed. With JobKeeper ending last week many business owners will now be assessing their ability to keep staff employed and managing their ongoing cash flow situations.
Remember, there are still several Government supports in place to assist both businesses and individuals. Below we have outlined a major one that may assist – JobMaker.
We have also outlined some other business strategies for you to consider when reviewing your current operations and cash flow situations.
What is JobMaker
The JobMaker scheme took effect from 1st February 2021.
It is designed to provide cash payments to businesses that are increasing their headcounts when hiring young workers aged between 16-35 years old.
There are some requirements that businesses must meet:
- New employees must have received JobSeeker, Youth Allowance or the Parenting Payment for at least two of the six fortnights before they were employed with you.
- New employees must work a minimum average of 20 hours per week during the JobMaker period to be eligible for the hiring credit.
- The scheme applies to employees hired between the 7th of October 2020 and the 6th of October 2021.
- The JobMaker Hiring Credit scheme offers $200 per week for each eligible new employee between 16-29 years old or $100 per week for each eligible new employee between 30-35 years old.
- The hiring credit is paid quarterly and is intended to be used by the business and as such does not have the be passed on to the employee.
The ATO has actually provided some really useful information about JobMaker on its website that is worth checking out. See the infographic below but also check the ATO website.
Do you think you will be eligible?
If you are employing staff and think you will be eligible – contact us and we can help you do eligibility checks, registrations and claims.
Cash Flow Tips
This section will outline some tips on adapting to the new “Covid-normal” business environment and ensuring you have adequate cash flow for your business without the JobKeeper subsidy.
Review your Financials and Budget?
You must understand your current financial situation.
What income will you be generating and what expenses will you be incurring. How are these likely to change in the coming months?
Do you have a clear picture of who owes you money and how you will collect this? Who do you owe money too and what are the terms? Can you consolidated these and take advantage of super low interest rates?
With this information you must develop a revised budget. You can also start making some key decision about certain areas in your business.
We would love to review and discuss with you to tease out areas needing attention and help you put in place a new budget which we can track.
Cut Costs
We know everyone hates doing this but…. Consider it, just for a while.
If the JobKeeper payments have become an important part of your income, then you may need to cut costs with the scheme ending. If you have been able to build a clear budget, then you may already know how much and where you can cut costs in your business. Otherwise, come speak with us at Trade Guardian for advice on what you might be able to do, and we will help you find the best place to reduce your expenses.
Stay on top of Debtors
More than ever, it is important to make sure that we get paid for the work we are doing…
Communicate with your customers to ensure they know your payment deadlines. If your customers are having financial trouble themselves make sure you are both clear about what you need and negotiate payment schedules if required.
Some people find this really difficult. It is never easy, especially now, to ask for money. If you are having trouble, do not wait. We can help you do this. It really is a vital component to managing your own cash flow. Talk to us to see how we can help.
Keep on top of ATO obligations
It is really important that we work with you to keep your compliance obligations up to date. Try not to let these pile up. They can be really hard to catch up on later. As the next BAS deadline approaches, be sure to work with us.
If needed, we can talk with the ATO to set up payment plans.
Take Advantage of New Business Opportunities and Processes
What we have seen over the last few months is the amazing ability for our clients to adapt. Being positive and taking advantage of new opportunities has paid off for many, for those both facing restrictions as well as those who found themselves in booming sectors.
Have you considering what opportunities are presenting themselves to you?
Have you been paying attention to the growth of digital business and online marketing strategies? Would these work for you moving forward? Your business might be able to take advantage of these to promote your products and services. Below are some links to information you may find useful:
What will the next 12 months look like?
As 2021 began, we perhaps unrealistically, expected things to settle down and go back to normal. We are all looking forward to better conditions with the vaccine roll out. The recent situation in Brisbane is a reminder that our stability is still fragile.
The next “Covid-normal” period will likely involve many stops and starts and constant adapting to changing circumstances.
How can Trade Guardian help?
It is always important to understand the position of your business, but never more so than now as we move through this “Covid-normal” period and consolidate after the last 12 months.
If you need any assistance in getting your bookkeeping up to date, Business Activity Statements prepared and lodged, help with processing payroll or assistance with checking your eligibility for the JobMaker scheme please Contact Us.