MAKING THE MOST OF CASH FLOW BOOSTS- HOW TO DO MORE WITH LESS
“As funds trickle back into bank accounts, the next question is; how to apply it to make the most of it?”
Author: Michael Brennan
Businesses have started receiving the first wave of financial support from the Federal Government this week with the ATO Cash Flow Boost tax credits hitting bank accounts.
In what seems like a lifetime ago, on March 12, the Morrison Government announced the first of three economic responses to the COVID-19 pandemic.
The first wave of assistance included the Cash Flow Boost. For many businesses the credit into their ATO integrated account of the equivalent of PAYG withholding, has been the only ray of light in an otherwise bleak two months.
Every dollar is crucial, no matter how small the amount, and it is bloody wonderful to see credits being refunded into bank accounts across the Nation.
The decision by the Federal Government to apply the Cash Flow Boost credit to existing ATO debt and allow businesses to refund the credit is just another highlight of the incredibly practical approach the Federal Government is taking during this pandemic.
As funds trickle back into bank accounts, the next question is; how to apply it to make the most of it? An earlier piece I wrote spoke of Business Survival Guides. This is the perfect opportunity to re-visit that Guide and ensure money is being allocated to areas that will best serve the businesses today and into the future.
I’m working through this with several clients currently and it’s amazing how far money can go when the occasion calls and the right strategic planning is utilised.
All eyes are now turning towards the first week of May and the JobKeeper payments that will provide the next kick along as we start to dream of a less restricted economy.
I’d encourage every business to take the time to sit down, re-stock and think about what the next 4-6 weeks might look like and how to come out the other side in the best shape possible.