If you own a business and employ staff you have probably received the Covid wage subsidy if your turnover has dropped by 30 percent from a similar period last year. There are also further subsidies available if the turnover has dropped by 40 percent for a particular period and also a low interest loan to help business meet their cashflow requirements. The government has got these payments out promptly and they will at some time in the future review whether the business actually met the requirements to be able to claim the subsidies and loan. It would be a good idea to review your turnover to ensure that you comply and have the necessary information ready should the Inland Revenue Department (IRD) request it.
The IRD also has been given more powers to remit penalties and in some cases interest on late paid tax caused by cashflow problems caused by Covid-19 .There are also Covid-related tax changes, some of which are short term, which may be relevant to your business. It would be a good idea to discuss this with your tax agent as it could help with cashflow in the future .
Going forward after the enforced break from Covid-19 lockdown it is a good time to review your business and look at maximising your business potential.
This means owners need to take leadership and direction of the business, review and discuss with key staff to get their feedback on what has worked in the past and areas of the business that may not be as effective .
Review your commitments, chase up outstanding debts, set in place arrangements for any customers important to the business who may be struggling and make arrangements with people who you owe money to, if it cannot be paid by due date. The key here is to communicate with both the people you owe money to and those who owe you money, as the outcome is always better if communication lines are open.
Review what you have spent on advertsing and look at putting advertising dollars in areas that have worked in the past, as this may give you an advantage over your competitors. Some people will feel that spending at this time is unwise but it is important to get your name out there and available to potential customers.
And the most important thing to do is seek advice from the professionals around you such as accountants, banks and marketing services. If you do this early, it may help turn your business around and give you an advantage over competitors.