Managing a healthy cash flow is often tough for small businesses and it is particularly the case right now in the challenging economic conditions
Many businesses are facing supply chain issues, utilities and wages costs are increasing, it is more expensive to borrow money and some sectors are suffering severe downturns.
Strong cash flow is the key to creating cost advantage. It helps you to capitalise on opportunities and keep the business going.
In this climate, recent changes to rules and regulations may both help and hinder cash flow. Here are some to keep an eye on.
Minimum wage rise
For example, the Fair Work Commission’s recent increase to the national minimum wage will add costs for some employers.
Changes to employee super
The Superannuation Guarantee – the amount that employers must pay to their workers’ super funds – has increased again from 1 July 2023. You now need to pay 11 per cent of an employee’s ordinary time earnings.
Instant write-offs
In another bonus for cashflow management, the new rule for instant asset write off is good news if you are considering any big purchases this financial year.
New PAYG and GST instalment rates
The Federal Budget delivered a potentially positive boost for small business cashflow with a change to the quarterly Pay As You Go (PAYG) and goods and services tax (GST) instalment payments.
Get in touch with us for more information on the new rules and regulations or to help improve your cashflow management.
