Aussies on the JobKeeper scheme unsure of their business’ future post-pandemic have been warned to create a plan of action well ahead of the wage subsidy cut-off date.
Amid the second Victorian lockdown, there may be some businesses that may not make it, said Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell in a LinkedIn Australia webstream.
“There'll be a lot of businesses that will struggle to get through this. It's really important making the call early before all of these things continue to bank up,” she said.
“This is probably the most important thing that all small businesses need to do right now. And that is put together what we call a business viability plan.”
Small business owners should sit down with their trusted advisor, such as their accountant or book-keeper to put together a cash flow plan for the next twelve months, Carnell said.
“That includes what's going to happen with JobKeeper finishes, when you have to start paying repayments to your bank again, when the ATO will be looking at possible payments to them you haven’t put in place, where your rent payments to your premises come back on. And that includes deferred rent, as well,” she said.
A plan should be put in place for what closing down might look like, and how staff would be paid
“When JobKeeper isn't there and you've got to pay staff without support, all of those things need to be planned for right now, because that will tell you whether the business is viable going forward.”
Without a plan, debt may continue to pile higher and higher, she warned – and the consequences could be dire.
“All of us want small businesses not to be in a position where they lose their home. That's just too too tragic.”
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