The end of financial year upon us, and in the midst of COVID-19, there is still a real need to review your business strategy and operational plans.
Below is a quick checklist of what should be considered at this time.
Just a quick reminder – don’t forget to take action..
Firstly, I’d like to personally thank everyone, for your continued support of our firm.
It’s fair to say that 2020 was a challenging year for most of us. Between the drought, the bushfires, the flooding and now the unprecedented impact of the COVID-19 pandemic, I can certainly see why clients want to see the back end of the 2020 financial year.
I certainly would not be arguing that point – most industries are currently experiencing some sort of contraction as a result of COVID-19 in particular.
However, the end of financial year is upon us, and in the midst of COVID-19, there is still a real need to review your business strategy and operational plans. This includes reviewing current and forecasted positions and ensuring necessary action is taken in time.
Below is a quick checklist of what should be considered at this time:
Instant asset write-off
You still have a little bit of time to review your business needs and take advantage of the $150k instant asset write off threshold pre 30 June.
Everything you need to know about the change in threshold is contained here https://www.hailstonco.com.au/blog/extended-instant-asset-write-off-making-the-most-of-the-150k-threshold-increase
Instant asset write off tips:
If you want to take advantage of the 150k instant asset write off we suggest you consider the following:
- The actual business need for the asset;
- The cash flow impact following the purchase of the asset;
- The tax outcomes;
- Your capital replacement plan.
A mistake people often make is leaving the making of superannuation contributions to the last minute. A contribution made by cheque must be received by the fund by midnight on 30 June; where paid by electronic funds transfer it must be credited to the funds bank account by then.
Review and consider making extra superannuation contributions (Now!). This year 30 June is a Tuesday.
COVID-19 – NSW Small Business Grant
The NSW Government is providing financial support in an attempt to reduce financial pressures resulting from COVID-19. This grant is a maximum of up to $10,000 [cash injection].
We suggest you review your eligibility and where satisfied, apply for the grant within the timeframe. Applications close 11.59pm Tuesday 30 June 2020.
Everything you need to know about the grant is contained here https://www.hailstonco.com.au/blog/nsw-small-business-covid-19-support-grant
COVID-19 – Accessing your Superannuation
If you have been affected by COVID-19, satisfy the eligibility criteria and intend on accessing your superannuation you must do so in time. Remember you need to apply through MyGov and have your super fund release the funds pre 30 June for the initial 10k.
An additional 10k will be available post 1 July 2020 – the same eligibility and release process applies.
Everything you need to know about the policy is contained here https://www.hailstonco.com.au/blog/covid-19-accessing-your-superannuation-early
Review the big picture, including updating budgets and Cash Flow Forecasts
COVID-19 has introduced new challenges to the business environment. As business leaders we have been presented with a unique set of immediate challenges:
- To develop short-term stabilisation and recovery planning scenarios;
- To develop and update long-term strategic plans amid the crises
The global pandemic has completely reshaped the way we work, as restrictions start to ease, there is a real need to consider the ‘new normal’ within your business plans.
Take this opportunity to really review the bigger picture of your business. Set the plan, review the budgets and forecast the overall cash flow positions!
Happy end of financial year,