“More businesses fail due to lack of cash flow than due to lack of profit” Rod Thompson, Principal Accountant at BPI warns his clients. “Its now more important than ever for all business owners and Directors to assess their current income streams and their short and medium term cash flow scenarios.
As both the ‘initial cash flow boost (March April, May & June) and the ‘additional cash flow boost’ (June, July, Aug & Sept) will effectively come to an end, following the September BAS lodgement, businesses will need to make sure they have enough cash flow to cover their PAYG liability moving forward.
Whilst the focus has been on the extension of JobKeeper, which has certainly been positive for many employees and employers, many businesses will soon face the harsh reality of the ‘bridge to the other side” when the PAYG cash flow boost ends.
If Company Directors are not aware of their responsibilities and they do not focus on their cash flow in the short and medium term, they could be facing a looming disaster.
Now is the time to start planning. Speak to Rod or your BPI Accountant, and map a path to the other side.
Stay safe and best regards.
The Team at BPI
Our articles are issued as a helpful guide to clients and for their private information. The information provided are general comments and do not constitute or convey advice for personal circumstances. As the situation remains fluid we are committed to providing you with the best support possible