Mind you business – Covid relief is over for business owners, and now the struggle is real.

MIND YOUR BUSINESS

By Troy Marchant, Director, Adviceco Chartered Accountants

COVID relief is over for business owners, and now the struggle is real

Small business owners currently face government legislated (and industryled) wage and superannuation increases, increasing energy and supply costs, a tight labour market and increased pressure from the ATO. Where can a business owner – who employs Australians and supports the Australian economy – buy a bucket?

The issue: Small businesses are now scrambling to prepare to meet the Labor government’s commitment to an increase in minimum wages of 5.2% that was announced on 15 June. In addition, the super guarantee (SG) increase from 10% to 10.5% will occur on 1 July 2022. Wages have increased organically across many industries too, in particular construction, as a way to keep talent. This is a reflection of the tight labour market. The rising cost of energy is being felt by many business owners too. One-third of small businesses experienced energy hardship due to COVID, the Small Business Power Research Report from the Council of Small Business Organisations Australia found, and that has left one in five with an energy service debt leading business owners to resort to personal savings as a means of payment.Business owners are concerned about the ATO’s resumption of tax debt collection as well as meeting business finance and commercial rent obligations.

The smart approach: The simple starting point is to crunch the numbers harder than ever before. Never has it been more important than to flex your accounting software and accounting team of professionals for full visibility of where every dollar related to your business travels.

A good accountant will look holistically at your business and consider where efficiencies can be made, income can be generated, projects can be planned, resources can be structured and, bottom lines can be saved. An accountant can look at your loans, your suppliers, your human resourcing, your technology, your sales and marketing, your tax and finance structure, your infrastructure, your business plan and personal finance goals and then outline where you can save and make money.

If you haven’t got a plan to meet the rising cost of running a business, or a picture of how these increases will impact your cash flow, you need one.

Join our complimentary business workshop on 3 August for more information and strategies. Visit www.adviceco.com.au

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