Covid challenges: we’re here to help
Hopefully this finds everyone well in their bubbles. It’s great to hear that as a country we seem to be on top of this virus and that we will drop to level 3 in a few days. Right now it seems like we are in one of the best places in the world.
Obviously though there are serious challenges for the small business owners, contractors and rental property owners that make up the bulk of our client base. At The Accounting Hub we have been lucky enough to be able to transition to a work from home model – the business systems that we use have always been chosen to be able to work in a work from home context and we are able to use video chat (Google Hangouts) for face to face meetings within the team and when we need to meet with clients.
Some clients of ours are in the same situation and are able to work broadly as normal during the lockdown. Others have different businesses and some will need to wait until level 2 before they can start trading again.
This is the type of business disruption that few if any will have planned for. Right now where possible the key will be to keep cash levels as high as possible and to retain talented team members. The Government’s wage subsidy scheme goes some way to assist with this but in some situations retaining all team members may not be possible. There is some useful information at our client’s, Cinch HR, website here.
In some situations it might be prudent to make an arrangement with the IRD to pay taxes late and the IRD is generally supportive of this if they are contacted in advance. For provisional tax payments tax pooling (TMNZ) can still be a really good option for maintaining cash flow – let us know if you need more information about this or help to arrange this.
Another large expense for some clients is rent. We are hearing from a property manager that we work closely with, that commercial landlords are giving rent relief and we suggest that you take up this conversation with your landlord if you have not already.
Beyond merely staying afloat, these weeks present a good opportunity to take a serious look at your business and your life to see if what you currently have will be fit for purpose going forward. If your business needs a restructure, you want to start a new business or if you simply have questions about how to manage your tax payments, get in touch. For business planning services we can help you to access Regional Business Partner funding which can help with the cost of our business planning service.