Giving Your Business A Thorough Financial Check-Up

With many of the business’s financial subsidy packages drawing to a close on their deadlines, businesses may be concerned about how they will fare without the subsidies. Your business’s survival however does not have to be attempted by yourself. Here is a list of some of the things that you can do to accommodate your business in a difficult environment. 

 

Conduct A Business Health Check 

Bringing in a professional to look over your books or accounting software could help you to identify whether or not your business has any errors in the ledger. This could affect the amount of GST that you are paying, as paying too much or not enough could be affecting your cashflow. 

 

Check Your Pricing 

Have you noticed an increase in the cost of the goods or the services that you sell? If your pricing fails to address that increase in its cashflow, it may not be operating at a profit. Ensure that you are charging enough to not only keep the business operational but also give you the lifestyle that you are wanting. 

 

Prepare A Cashflow Forecast 

As you are the person that best knows your business, you’re probably in the best position to forecast its future. Prepare a cashflow forecast to help get you through the next 12 months, and track your business’s projected future against the actual outcomes and numbers.

 

Tax Pooling 

If cashflow for your business is tight and you are struggling to make your provisional tax payments on time, you may want to consider tax pooling. This can help to avoid penalties and interest inflicted by the IRD. 

 

Assess Your Business’s Resources 

COVID-19 may require you to evaluate the resources and assets that your business currently possess, particularly if you have been negatively impacted by the situation. Restructuring your business and analysing the costs that your business requires to operate successfully and properly may require hard choices to be made about employees. 

 

Alternative Funding 

Though many of the government subsidy schemes for businesses have had their submission deadlines pass, there is still some funding available if you require the assistance of specialists in progressing. This can be found through the Inland Revenue Department, the Regional Business Partners Network or the Ministry of Business, Innovation and Employment websites. 

If you’re unsure of how to effectively, and in compliance with standards and regulations, assess how your business is progressing, you can come to us for further advice and assistance. As accountants, we are equipped to handle your business planning and guidance requirements.

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