View our video here – https://www.loom.com/share/eebe57e6b366496aa94e1720d9c56732
This email is intended for those who have a business that has been worst affected and need immediate attention to keep your doors open.
Below are matters that you should put into place as soon as you finish reading this email. Please do not delay. Put these in place immediately.
We can take 2 approaches to this matter. Approach 1 – we roll over and close our businesses. Approach 2 – we find ways to survive. I am a strong advocate of approach 2.
Please put in place the following now:
1. Call your Bank – the banks are accommodating to customer requests at the moment. Please ask for the following:
- A freeze on your personal mortgage repayments
- A freeze on repayments on your business loan, line of credit or overdraft.
- A freeze on your hire purchase or equipment finance liabilities
- A freeze on your Merchant fees
- A 250k loan is available which is 50% secured by the government. The loan is for 3 year with an initial 6 month repayment holiday.
Please remember that there is no such thing as free money. The banks are likely to capitalise the interest and add it to your existing loan. This just takes the pressure off in the short term
2. Call you landlord – Your landlord will also be entitled to relief from the banks and should pass that onto you. Ask for a pause on your rent or renegotiate better terms. Commercial properties everywhere are vacant and will remain that way for some time.
3. Assess your staffing needs – This is one of the hardest things you need to do. Let go of casual staff that you no longer need and reconsider exactly which staff you will need to keep things going. There are some good benefits that the Government is offering those that are unemployed. You can always re hire them once things stabilise.
Please call in favours from family members. They can be your staff during this down turn and can make a huge difference to your bottom line.
4. Utilities – Call your supplier and ask for more time to pay.
5. Suppliers – Call you suppliers and ask them to extend their credit terms. If they refuse, do not take it personally as they are in the same situation. You are likely to get a more favourable response from larger businesses. Don’t be afraid to ask for a discount also.
6. Review your direct debits – These are those small expenses that come out each month automatically. These usually recur on the first of each month. Do you really need them? Check your bank statements to see exactly what is coming out and stop what you don’t need.
7. Annual Expenses – don’t just accept renewals. Please find more competitive quotes and only purchase what you need.
8. Cafes and those with restrictions – go to your clients. Nobody likes paying high fees to the likes of ubereats and others. Now is not the time to worry about profit. Utilise their services to keep your doors open and staff employed. If more people are working from home, then this is where you need to deliver to.
Change your opening hours. If no one is coming after 3pm for example, then close and save labour costs.
Offer cashless ways to transact with your clients and make it very clear that you are still open for takeaways. I have seen open Cafes that look like they are closed. Make it clear that you are open.
Please include a kids menu as the school holidays are just around the corner.
9. Draw on your super – For sole traders who have experienced a 20% drop in sales, or those employees with with 20% less working hours are entitled to $10,000 from their superannuation before 30 June and again after 30 June. These payments are not taxed. Please apply through the mygov website and these payment swill be available from mid April.
10. Delay paying your super – The ATO has recently announced an amnesty for unpaid superannuation. All unpaid superannuation amounts need to be paid by 7 September 2020 and still be able to claim the super payment as a deduction. Normally late super payments are not tax deductible.
What we at Femia Accountants will do for you:
1. Negotiate your ATO debt so you wont need to pay for 6 months, interest free.
2. Revise your BAS to remove PAYG instalments (tax paid in advance). The ATO will waive interest and penalties for under reporting this amount.
3. Claim all your stimulus package benefits including the 20k to 100k
4. Claim your $17,500 payroll tax rebate and delay your payment for this year by 12 months
5. Maximise your asset claims under the new 150k asset write off arrangements. This means you can purchase any asset up to 150k and it will be deducted this year rather than over several years. This will create some significant tax savings.
6. Meet with you to give you a detailed plan for minimising tax this year.
7. Meet with you to provide a detailed cashflow forecast so we can steer your business out of this difficult situation.
All our meetings will be by video conferencing which is accessible through your phone, tablet or PC. Its also Corona- proof 🙂
Please forward this to anyone that may benefit.
Contact me to 9316 4500. Our office is open and all staff are focused and ready to assist.