Childcare Consultancy, Cash Flow

Cash Flow Management in the Face of COVID-19

Cash Flow Management in the Face of COVID-19

Cash is key in the months ahead, so understanding and managing cash flow levels have become essential. We know some people require some assistance, so we have outlined some areas and initial points of where to start to make your cash last longer.

Your lenders

Contact your banking provider directly to request assistance and gain an understanding of what they are offering to customers. Requests can be made for both business and personal loans.

The control of your cash position is so critical that, if you are in doubt, we suggest you request suspension of your monthly debt servicing commitments. The cash saved can be deposited in offset accounts or saved in other bank accounts to either be used to assist you through these difficult times or, if not immediately needed, to pay off your loans at a later date.

The Australian Banking Association (ABA) has provided a full contact list here of all providers, contact numbers, websites and latest media releases where available.

Income tax, GST and other reporting relief

The ATO has released the ‘Boosting cash flow for employers’ legislation directly aimed at putting more cashback in the pockets of businesses. However, these aren’t set to take effect until 28th April. For more immediate relief, payment deferrals on current outstanding debts will enable you to pause current obligations for up to 6 months. If you find you are able to make payments at an earlier time, you can still do so.

Variations to PAYG Instalments including credits will also be available without penalties or interest charges for the remainder of the 2020 financial year. However, please bear in mind that, at this stage, you will be required to pay your income tax once your 2020 return is due for lodgement.

About John Hutchison information

Success cannot be achieved without sufficient planning, inspiring leadership & strong management. John brings his 28 years experience, childcare management exposure, marketing & strategy skills, & digital knowledge to his Early Learning Management role. John’s expertise spans the broader childcare sector & brings a balanced approach with a robust strategic capability & thought leadership to the team. John has specialised experience in childcare restructures, governance & compliance, mergers & acquisitions, strategic planning, equity raisings & initial public offerings (IPO).

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