Times are a little tough at the moment for a lot of Newcastle businesses. A slower economy is a challenge many businesses face at some point and you can get through it, especially with a good team behind you. Here are some of the most important relationships you can have to help you improve your business’s outlook.
Making a commitment to your partner when undergoing financial pressure to stick by each other and really look after one another’s needs when times are tough can make a real difference between just coping or thriving under pressure. Business owners in particular must ensure they keep up to date with their record keeping and often the spouse can help motivate the business owner to lodge on time or help prepare the books while the sole trader concentrates on getting jobs done.
The ATO prefers that people lodge their business activity statements and tax returns on time even if it means contacting them to make a payment arrangement where cashflow prohibits payment in full by due date. Talk to the ATO early so that they can provide you with workable payment options.
Cashflow issues are an early indicator of financial trouble so see your accountant about getting a budget or forecast financials prepared to help predict timing of incoming and outgoing cash so that avoidance strategies can be put in place if necessary. Be prepared to meet with your accountant to discuss your business and industry developments. Let them know what you’d like to achieve in the future and get some suggestions on ways to improve your business.
See your bank – again, keeping the bank informed will open up more options for you by discussing issues early rather than leaving repayments to become so overdue the bank won’t negotiate with you. Have a bank relationship manager who can meet with you to discuss your business needs and provide them with forecast financials to track your projection. Make sure you understand the bank’s policies for providing credit and get feedback on how they think your business is going. Having a healthy working relationship while times are good will encourage your banker who knows the value in your business to help you through the down times.
by Carol Allan
Carol is a Senior Accountant at Insight Accounting advice. She is a registered tax agent, has a Bachelor of Commerce and Advanced Diploma in Accounting. Carol’s areas of expertise include tax and property advice.
The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.