Trading out of the pandemic
By Renee Ballinger
As we navigate global conflict, natural disasters and the new normal post COVID-19, business and economic recovery is a priority, with the focus for business owners now needing to be in these key areas:
Staff – recruiting and retaining employees is expected to continue to be a challenge, so developing a plan to attract and retain staff is essential
Stock – due to global supply chain issues continuing to impact the economy, the level of stock held within all businesses should be reviewed to ensure it is at the optimum level for the industry and your particular business operations
Debt – some businesses may be carrying accrued debt, placing pressure on current cashflows. For example, rent concessions and deferrals applied during COVID-19 will now be required to be paid out of post-pandemic profits
Interest rates – it has been predicted that the Reserve Bank of Australia (RBA) could increase interest rates by up to 1.25% though 2022, and we are already seeing equipment finance rates rise by 1.5% in some instances (in advance of any RBA movement)
In early 2020 the Australian Taxation Office (ATO) placed a halt on their debt recovery action, although it is anticipated that this will resume over the next few months, in conjunction with the increased ATO activity following up outstanding lodgements that has already commenced. The ATO will also be increasing scrutiny on unpaid superannuation by employers, undertaking reviews and audits where superannuation has either been underpaid or in some cases not paid at all.
Maintaining business profitability and monitoring cashflows will be critical for the remainder of the year with business owners and managers needing to ensure that appropriate action plans are in place, especially with reduced government stimulus measures and support available.
For assistance with ensuring your business is on the right track and trading out of the pandemic, please contact the professional team at UHY Haines Norton CQ on 07 4972 1300 or firstname.lastname@example.org