Advice for businesses during the coronavirus outbreak

In the wake of the coronavirus pandemic, the Government has provided a stimulus package and the major and second-tier banks have announced a series of measures to help small businesses and the self-employed.

In the meantime, we look at what steps you may be able to implement to minimise the impact of the COVID-19 outbreak.

Chat to your customers

This outbreak is affecting us all and a quick email, or even better, phone call to see how your customers are managing may make a big difference to them and show that you truly care about their livelihood as much as your own. They will be comforted that there is someone who cares and that if you are aware of any problems their business may face, the easier it will be to help them through these.

It will also be reassuring for those customers who might be ok now, but will know that help is available further down the line if they need it. Alternatively, they may just be grateful to have someone to speak to, especially if they work and live alone. 

By staying in touch, you are also understanding the challenges your clients are facing in their own businesses, which in turn helps you to consider the likely impact on your own current and future revenue. The more time you have to look at this impact and react, the better.

Working from home

Working from home can be a very different experience, particularly if your business involves operating outside or you are normally visiting homes or businesses. You should find a routine that works for you and stick to the same hours you would normally work. Find a quiet room so you can focus on what needs to be done.

Ensure that you act now, to get technology such as Skype, Facetime and Zoom set up for you and your staff, allowing you to continue to have virtual face-to face meeting with your clients, as well as friends and family.

Staff redundancies

Many businesses will inevitably be looking at ways they can reduce staff costs and may be considering redundancies, reduced working hours, or unpaid leave. The Government is urging caution and asking businesses not to over-react to the situation. This is difficult to do when income is falling and you need to protect your business, but it’s important to consider what your business needs to function, even at a reduced level of activity. It’s also worth bearing in mind the costs and challenges of recruiting once the crisis is over and you are trying to return to ‘business as normal’.

Make sure you consider employment law in all staff related matters and seek advice should you need it.

Update you accounting records

Now is a good time to get a sense of where your business is financially. Once you know your numbers, both you and your accountant can plan your way forward and look at a cash flow forecast. Cashflow is going to be key.

Make sure your accounting records are up to date and work with your accountant.  There is a range of online technology and software that means you can get your records to your accountant without necessarily having to go and see them. Now may be the time to update your systems and take advantage of some of the tools and technology available to help you understand the numbers and save time and effort.

Once your figures are up to date, this will give you a clear picture of what your business and, more importantly, your family will need over the next few months. 

Stay close to any announcements from your bank and the Government, both of whom are committed to supporting businesses during these difficult times.

Speak to your bank about funding

If you have concerns about your cash flow over the coming months, there are several support packages available to you.  Many of the major banks have stated they have options that businesses are able to access should they experience temporary setbacks as a result of COVID19 affecting their business.

You should also consider alternative lenders who may be able to help you in the short term. By keeping your bookkeeping up to date, you will be able to provide lenders with a clear picture to help smooth this process.

Most businesses will have some working capital available, but this can quickly be used in challenging times. Use your knowledge of your numbers and understanding of future income, order, costs and commitments, to look at how you and your business will cope with a fall in income. Ask your accountant to help if you need support to do this.

Talk to the ATO

A series of administrative measures have been announced to assist taxpayers affected by COVID-19. These include payment deferrals and variation of instalments due. To support this, it has also launched a dedicated helpline 1800 806 218 offering tailored help for your circumstances.

We are here to help

If you need help with your accounting needs during these turbulent times then give us a call on the number above for a free initial consultation.

We can offer initial consultations over the phone if you have any concerns about face to face meetings.

Date published 18 Mar 2020 | Last updated 18 Mar 2020