With the passing of time, the initial rush starts to settle. In this time we strongly recommend every business start to consider and undertake the following:
Cash Flow three months:-
- Consider the cash flow of your business over the next three months
- Consider income or cash receipts
- Consider expenses in terms of: critical, deferrable, negotiable, non essential
- This process will help you identify key factors in the relative short term and the impact of what has been taken on. If we have deferred payments when are they going to be paid? What will the attitude be of the banks and taxation office for example?
Cash flow twelve months
- The next step is to take a longer term view of the impact
- Is “My Industry” going to have a “V” shaped recovery a “U” shaped recovery or an “L” shaped recovery?
- When the stimulus funds stop and the deferred costs need to be paid what does my business need to be generating?
- When will your overheads stop being deferred?
- Will the business look the same or will there be huge changes – if so what?
- Will you have the same staff mix, same premises, same products and services provided or offered?
- Do you need to look at investing in product diversification?
- What does the picture look like?
- If the picture is not to your liking what is your plan of attack to change?
As always if you need assistance in creating and working through such matters please contact our office.
You are registered and the Stimulus funds Start!!
- Once you have registered, met the criteria, established it is not the end – then what?
- You need to confirm and review figures and your employees monthly to remain eligible
- This provides a simple process for the Taxation Office to check the numbers are consistent over the coming months
- Ensure you have met the criteria with plausible evidence for the claims you have made if asked. This is because we suspect the tax office is going to be increasing their auditing regime.
- If you find when reviewing figures after using a forecasted figures that their has been a significant variance you are able to opt out and stop receiving the ATO allowances. If you wish you are able to refund the money back to the Taxation Office
- It would seem at this time there is no criteria around audit activity, except where a taxpayer can be seen as not taking advantage they will be treated favorably; where it appears the taxpayer Is taking advantage of the situation it may well be a very different outcome.
ANY QUESTIONS PLEASE GET IN CONTACT WITH THE OFFICE