What to do when you have a cash shortfall

When times are tough it’s not uncommon to find yourself short of cash, especially at the start of the month. You know your business is sound and will be solvent, but you can’t pay your bills right now. What should you do?

We recommend prioritising the following:

• Prioritise paying staff
  Not only is it a legal obligation and the right thing to do, your staff are one of the most important assets you have.

• Make sure you file your taxes and BAS
  You can make arrangements to pay them later, but keeping up to date with your filing shows good faith to the ATO and is really important when if you need to negotiate a payment plan.

• Talk to your creditors
  It’s not easy, but by engaging with your suppliers early you prepare them for the lack of payment or late payment. By reaching out first, you show them you are committed and not avoiding their calls. This will give you time to maneuver your way back into profitability.

Disclaimer

This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided having regard to your objectives, financial situation and needs.