COVID-19 Business Update, Government Economic Stimulus Package and assistance available from Business Precision
As your accountants and business advisors we believe it is prudent to provide you with some information in relation to COVID-19 and its potential impact on your business in the coming weeks and months.
Although many of our clients are not experiencing any direct impacts at this stage, and may not at all, some of our clients have expressed concern.
Please note that the COV-19 situation is continuing to develop each day.
This information is not designed to set your business into any panic, it’s purely designed as a guide to cross-check ‘IF’ your business has the potential to be impacted:
Some key concerns are around:
- Health Impacts and Workforce Availability
- Supply Chain Issues
- Financial & Cashflow Difficulty
For some businesses, these impacts combined with the normal day to day ongoing fixed costs of operating a business are providing a cause for concern as to what the immediate future holds.
This guide is not exhaustive, and your business may experience different issues to the ones noted in this guide, these are purely key trends we have recognised may be issues for our clients.
We have provided below some guides, links and steps that you may wish to take in your business if you are concerned.
Two other action points and assistance outside of this update include:
- If you are concerned about the impact of COVID-19 on your business, we are offering a complimentary appointment of up to an hour to discuss your concerns and any potential action required, please contact our office to arrange.
- The government has released today their response for which you can find a link to below, please have a read. On page six there is a table of direct investment stimulus actions for reference that may assist your business. https://treasury.gov.au/sites/default/files/2020-03/Overview-Economic_Response_to_the_Coronavirus.pdf
Health Impacts and Workforce Availability
The Government of Western Australia - Department of Health has released a wealth of information in regards to Coronavirus https://www.healthywa.wa.gov.au/coronavirus
Both the state-based and federally based employment regulators have provided guidance around how to manage your workforce in the case of impact, such as self-isolation, employer directed isolation etc.
For employers in the WA state industrial relations system see here: https://www.commerce.wa.gov.au/announcements/employment-impacted-novel-coronavirus-covid-19
For employers in the who fall under the national industrial relations system see here:
Potential Supply Chain Issues
Assess your supply needs and identify where your stock is sourced from/manufactured.
If you are usually sourcing supply from within Australia, but from Australian import businesses seeking supply from overseas, it may be prudent to check on the availability of your raw goods and finished products.
If you seek supply directly from overseas, contact your supplier to confirm availability.
If feedback indicated is that there is going to be a shortage in supply in the coming weeks and months, undertake some research for potential alternate supply.
If you believe once the above has been undertaken, there are going to be issues with supply, please contact us to discuss options as it is likely that you may experience some difficulty in the coming weeks and months depending on the length of your business cycle.
Financial & Cashflow Difficulty
Financial and cashflow difficulty can be caused by several issues, including but not limited to:
- Lack of stock to sell
- Reduced demand for products and services
- Downward pressure on pricing in sales
- Increased pressure on pricing in input costs for high demand/low supply goods and services
- Issues with customer payments
The impact of these issues in your business may result in you having trouble meeting your payment obligations. It is critical that as soon as possible you make steps to review the costs of your business and identify areas of expenditure that may be able to be reduced.
You may also need to review bank commitments and if you are experiencing difficulty, contact your bank to discuss what may be able to be arranged in the immediate term.
If you are experiencing or predicting financial difficulty at this stage or are unsure how to predict if you will be in the coming weeks and months, please contact our office for your complimentary consultation, it’s critical to seek assistance early.
This information is intended as a general guide and not intended as specific advice.
Understanding the potential impacts to your business continuity planning is critical and will assist you with better understanding whether you may or may not be impacted in the coming weeks and months.
Again, if you are concerned, please contact us on 9022 9726 to discuss your specific needs.
Liability limited by a scheme approved under Professional Standards Legislation.