What can we do to survive the business impact of COVID-19?

I met my client yesterday. The client was concerned about 50% reduction of his revenue. Then we sit together to do Scenario planning based on 20%, 35% and 50% reductions of revenue. In the end , he said that the results are not too bad. We thought to share this with you during this time.

Putting your business finances under scrutiny can be daunting, but the sooner you do this the sooner you will have the visibility, control and confidence to shift your focus from risks to opportunities.

Here are the tactics Newmarket Accounts have shared with clients so far: 

1.     Get a really clear understanding of the current financial state of your business. 

How has the last few weeks impacted your revenue/leads?

How likely is it that your current debtors will pay you?

What are your current inventory levels and when will you need to restock?

2.     Update your forecast and if you don’t have one, build one – it’s never been more essential

3.     Review your expenses and distinguish between ‘need to haves’ and ‘nice to haves’ – cut the latter. Tough but necessary;

4.     Scenario plan – the future is uncertain so it’s critical that you have different plans for different futures (plan for the worst and know your decision trigger points);

5.     Take advantage of the Australian Tax Office’s (ATO’s) leniency around outstanding tax obligations and explore payment plan options to help extend your runway.

Our accounting team is busy helping our clients navigate this process, so please reach out if you’d like our support or book in a time by email for a free audit.