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How to avoid the holiday slump

Posted on December 20, 2017 by admin

The summer holidays may be a period of increased sales for some businesses, but for many, it can be a quiet time with a heavily reduced cash flow.

Staying ahead financially, if you are the latter, can be difficult which is why you should consider the following:

Use it to your advantage
A lull in sales does not have to be a negative, you can use it to your advantage. You can use the quiet time to organise your administration and get everything in order for the New Year. Revising the books and taking care of any financial obligations that have fallen by the wayside throughout the year is perfect while you aren’t distracted by making sales.

Plan the New Year
The holiday season is the ideal time to plan for the New Year, particularly in regards to marketing strategies, increasing cash flow, the introduction of new products and/or services, and maximising customer satisfaction. Sit down with your team and map out a plan for heading into the New Year; give them projects or tasks to take ownership over, either individually or in teams.

Hiring and training
Taking care of the hiring and training during the holiday slump is a very clever strategy. It saves the new employees being thrown into the deep end and allows them to get used to the business as well as their the job role and what is expected of them.

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Government increases cash flow support for businesses

Posted on March 27, 2020 by admin

The Australian Government has increased support for businesses to manage cash flow challenges under the ongoing COVID-19 circumstances.

The Boosting Cash Flow for Employers measure announced on 12 March 2020 will be increased to provide up to $100,000 for eligible small and medium-sized businesses. To be eligible employers must have been established prior to 12 March 2020 and have an aggregated annual turnover of less than $50 million and employ workers.

The measure will provide employers with a payment equal to 100% of the tax withheld from wages and salaries. This is a rise from the original 50%, with maximum payments being increased from $25,000 to $50,000 and minimum payments being increased from $2,000 to $10,000.

Employers will receive payments from 28 April 2020 from the ATO as automatic credit in the activity statement system upon lodging eligible upcoming activity statements.

Eligible businesses will be provided with an additional payment during July – October 2020. The payment will be equal to the total amount received under the Boosting Cash Flow for Businesses scheme. For monthly and quarterly activity statement lodgers, these payments will be provided as automatic credit in the activity statement system for each lodgement up until October 2020.

The Government has also introduced the Coronavirus SME Guarantee Scheme to support the flow of credit for small and medium enterprises (SME) by providing a guarantee of 50% to participating SME lenders for new unsecured loans that will be used for working capital. To be eligible, SMEs will have a turnover of up to $50 million and the loans must comply with the following terms:

The SME Guarantee Scheme will still require businesses to repay these loans and approval is subject to regular lending requirements. The Scheme will commence by early April 2020 and be available until 30 September 2020.

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