Are you ready for the End of Jobkeeper?

Last Updated: November 18, 2020

Not sure? Get advice, find out, ask questions.

How to prepare for the end of Jobkeeper

If you are not sure if your business is ready for the post JobKeeper era, the best advice is to get advice. It is worth finding out. Asking questions costs a little time, but is repaid many times over and can save a great deal of heartache.

Talk to your bookkeeper or accountant. Get on the internet and look up government websites which deal with business planning and related matters. There is a wealth of information just sitting there waiting to be used.

However good your business or technical skills are, you still will need cash.

How do you know if you will you have enough cash to keep going when Jobkeeper finishes, or the BAS is due?

Maybe you just want to know what your situation will look like in twelve months’ time. The use of a cash flow calculator to see what things will look like can be an especially useful addition to your business toolbox.

Every quarter brings its own cash flow issues.

The BAS must be lodged and GST, PAYG and Super must be paid. Lots of businesses find this time stressful as money has been used to pay staff and procure stock.

At these times, a cash flow savings plan to meet known payments such as the BAS become especially useful. A small amount set aside each week can take a great deal of stress off when the payments are due.

Some businesses have a separate bank account, some pay extra instalments to the Tax Office, so they are in credit most of the time. However it is decided to be done, it is very helpful when the bills roll in!

Sometimes there is not enough cash to pay the Tax Office.

Unfortunately, you cannot just hope they do not notice until you can pay it. So, if you do owe the tax office anything but cannot pay, ask for a payment plan. Your bookkeeper or tax agent can set it up for you, or you can call them yourself. They will help you: after all they are more interested in getting paid than seeing you go out of business.

Cash flow can also impact on super payments. If you have unpaid superannuation liabilities? Ask for a payment plan. Once again, the Tax Office is more interested in payment than foreclosing, just because a business is suffering a temporary cash flow difficulty.

Are you worried you might become insolvent?

Talk to your accountant or insolvency people about a deed of Company Arrangment (DOCA). There are other measures besides DOCA’s, that will allow you to continue trading.

The most important message is seek advice early. This cannot be emphasised enough. Following this advice is most likely to save you and your business!