With JobKeeper winding back, and the federal government indicating further broad support is not on the horizon, it is important to make timely decisions regarding your business.
For some, JobKeeper support may have already ended. For others, this support will end in March/April 2021.
A number of clients have had issues with the winding back of JobKeeper. Many businesses have closed down and others are continuing to fight on.
Understanding your numbers is pivotal to making good decisions (good accountants record the past, great accountants influence the future).
Make a plan:
- Where are you now (balance sheet, profit and loss, cashflow)
- What does the future look like? (projections)
- Is this acceptable? What changes should I make? Should I close the business to prevent further losses which may impact my personal assets?
Understanding and being on top of your finances significantly decreases mental health issues.
“Nigel Marsh said, “There are thousands and thousands of people out there living lives of quiet screaming desperation who work long hours, at jobs they hate, to enable them to buy things they don’t need to impress people they don’t like”.
I have a dream that all inhabitants of Australia (and the world) have at least a basic level of financial literacy.
This should be learned in primary school, high school, and prior to being able to purchase a property and take out a mortgage. Increased financial literacy will have a positive impact on not only the individuals with the knowledge but the community as a whole and the government as well. It will lead to greater mental well-being, less stress, reduced cases of depression, happier families, reduced incidents of domestic violence, less reliance on welfare, the aged pension and reduced suicide. This is too important for the world to ignore and has a range of simple (at least in my mind) fixes. I personally learned a long time ago that your knowledge is very powerful and no matter how simple the knowledge is to you, it can be life-changing for someone who does not know the knowledge yet (“You don’t know what you don’t know”).
Our other non financial tips:
- Turn off your phone and don’t check your email when not working
- Drink less alcohol
- Eat healthy
- Seek help wherever needed
If you need help planning for the end of JobKeeper, book an ASBAS advisory session with Greg: www.businessstation.com.au/advisor/greg-mawer