JobKeeper time bomb: 8 questions businesses must answer
BUSINESS owners will need enough "mojo" to fight through the next 100 days and survive when the Federal Government's JobKeeper support ends, a leading insolvency firm has declared.
Jirsch Sutherland Partner Andrew Spring said companies relying on JobKeeper or temporarily trading while insolvent will have until mid-September to form a business plan or make the choice to liquidate.
"The JobKeeper safety net is being removed in three months - not to mention other stimulus initiatives and forbearance measures ending soon - and that means business owners should be getting on the front foot now to survive," he said.
"We're experiencing an economic event that's both macro and micro in nature and company directors need to be proactive about assessing the impact on their business and the changes required to get back on the right course.
"That includes getting your accounts in order, meeting taxation and superannuation obligations and, if necessary, seeking professional help from a qualified adviser."
Mr Spring said there were eight points business owners urgently needed to ask of themselves:
What is my cash-flow situation like now and what will it be like after stimulus ends?
Will my revenue streams recover and are there opportunities for new streams?
Can I afford to keep staff on post-JobKeeper?
Can I meet deferred payments (rent, mortgage)?
Do I have the money to pay tax when it falls due?
Do I have enough money to meet the next superannuation payment?
Do I want to hang on or have I lost my passion for the business?
Are my personal assets (personal savings, house, car) at risk?
Mr Spring said company owners needed to consider whether they still had "mojo", or whether they had lost passion for the business.
"Plan for the current conditions, the immediate post-stimulus environment, and for the longer term," he said.
"Ensure you have a contingency plan should the economy be hit by a second coronavirus outbreak."
Originally published as JobKeeper time bomb: 8 questions businesses must answer