The Countdown to holidays begins. Its that time of year again and the stores have Decorations up ( even the virtual ones !).
This time of year can become a bit of a balancing act as a business Owner, especially real estate agencies. Its this time of year that everyone wants to settle on properties that are already in the pipeline and contracts have been exchanged. All the buyers want to move in before Christmas!
But what happens AFTER those few days in December? Usually conveyancers and solicitors close their offices for a few weeks and this impacts on what is happening in your agency. Why?
- No conveyancers/ solicitors means, No Settlements
- No Settlements means, No Order on agents
- No Order on Agents means, No commission payments.
- No Commission payments means.. well, No cashflow!
Here is what you need to do:
- Take a little time and calculate what will be your cashflow needs right through to end of January. Don’t forget to include rent, wages, and any other automatic payment that you forget about.
- Then if possible, put that amount aside or plan when the deposits and payments are happening so you are managing your cashflow, not your cashflow managing you!
- Remember there is also the government stimulus package that will give you the flow in cashflow.
- Instant Assets Write Off- – an accelerated instant asset write off which has been increased up to $150,000 from $30,000. Only downside to this is that you need to spend the money to get the advantage. But if you are after new equipment or motor vehicles or anything ( Not Land purchase) then this is the time to look around. Also don’t forget the After Christmas Sales to pick up a great deal.
- Employment assistance for small business – providing payments to companies with
turnover up to $50M, as well as wage subsidies for apprentices or trainees. This equates to tax credits and offsets for ATO liabilities as well a payment of the subsidies. It helps the cashflow as you don’t need to spend the cash to pay liabilities. Also if you were thinking of putting on a new trainee, now is a good time.
- Job Keeper- a business support package currently providing $1,200 per fortnight per employee for impacted, eligible businesses. This means actual cashflow for the business.
All of this assistance needs to be taken into account when working out your needed cashflow. Remember these will not be on offer forever, so make sure you are receiving what you are entitled to.
If you have no idea what I am talking about PLEASE go and see your accountant so they can put you on the right track – you could be missing out on a much needed boost to finances.
As you have your relaxing Christmas Break with family and loved ones, you can have peace of mind knowing that you have enough cashflow to last you until things start again.