These are unprecedented times and I am not in a position to make a forecast on the length of time of the virus impact and the longer term economic effect. What we can be certain of is this. It will have economic effect.
With markets like the stock market and property markets my advice remains to follow the bouncing ball if your cash flow permits. In essence I am saying in a lesson learnt from the GFC is that your cashflow is king and doing a “good” job in your business or employment should remain the number one priority. Your best chance of remaining “economically” safe in this low interest rate environment is to make sure the money comes in and the bills are paid.
Do not confuse the market corrections with the GFC (Global Financial Crisis) My discussions with banks are very different to 2008/2009, they are very much open for business rather than the financial liquidity squeeze of the GFC. This is not a financial crisis, it’s a health crisis with economic ramifications.
Markets will and always have gone up and down. Now is the time to make short term changes for long term benefits. Do a better and cleaner job than you have ever done before, providing assurance to your customers you are the right choice for the longer term relationship.
Here at Butlers we have a strong philosophy at present. I would go as far to say it’s a short term pillar.
“Make hay while the sun shines”
Butlers is a 100% labour business and people quarantined or sick is a direct productivity and business loss that can only be minimised by planning. To the credit of the Butlers team they have committed to putting in the extra yards in anticipation of periods of down time.
We ask for client co operation on this as much as possible, namely if your 2019 work is not yet in please send it to us or arrange an appointment.
What we are doing?
- We have encouraged and changed a lot of client appointments to web based meetings using zoom software.
- We are encouraging our staff to work from home with controlled security of client files through locked satchel transport of files and our 2 step Virtual Private Network ( VPN) security. Staff showing any signs of illness will work from home and be quarantined for a deemed necessary period. The members of the team who have children are also a first priority to work from home arrangements.
- We are in discussion and review of ATO directives. I expect the following
- Lodgement dates will be extended
- Concessions via remissions for late lodgements and interest that occur due to Covid 19.
Please do not rely on ATO concessions. My advice remains, please send in any outstanding work as soon as possible to alleviate stress on you and the Butlers team.
Tax Planning 2020
This is a wow, opportunities are flying at us thick and fast.
April and May 2020 will provide some unique opportunities for clients in the tax planning process. In my opinion it will be a very important year to get a well-documented plan measuring tax benefit v cashflow.
As per usual we will start making contact with clients after the March 2020 Quarter to start devising the strategies and plans.