Save
Why cash flow is king during COVID-19
Cash flow has never been so important, according to a chartered accountant.
Why cash flow is king during COVID-19
Palfreyman Chartered Accountants’ principal, Simone Palfreyman, has highlighted that with restrictions of COVID-19 likely to continue for many months, individuals and businesses alike should be focusing on the creation of cash flow forecasts.
Ms Palfreyman has previously highlighted that the most common question she is hearing from her clients during COVID-19 is, “Can you help?”
For individuals: “They need to consider how long they can survive on pay reductions and what alternatives they have to supplement that wage reduction,” the accountant indicated.
This could include the JobSeeker or JobKeeper payments, early access to super, rent reductions or using mortgage hardship entitlements, she outlined.
Ms Palfreyman extended this notion to businesses: “I believe that all businesses should be preparing cash flow forecasts to consider the alternatives of revenue reductions, government cash flow incentives and available resources.”
They should be considering any possible rent concessions, trade payment extensions and options for alternative suppliers.
Regardless of the cash flow forecast’s purpose, Ms Palfreyman highlighted that it’s an area in which accountants are willing and able to lend a hand.
“Many people are not aware that accountants can assist in preparing cash flow forecasts, providing advice on employment obligations and assist as a go-between in negotiations between employers, employees, suppliers and government bodies.”
Not only can they provide advice on available government incentives and assist clients in applying for those concessions, but accountants can also negotiate payment plans with the ATO on their clients’ behalf and request remission of penalties and interest.
“Clients need more assistance than ever in navigating the new COVID-19 environment, [especially where] the legislation and government stimulus opportunities are changing on a daily basis,” she said.

About the author

About the author


How to budget
The psychology behind saving: Understanding and overcoming common barriers
Saving money is a fundamental aspect of financial security, yet many people find it difficult to set aside a portion of their income regularly. Read more

How to budget
Smart saving tips for first home buyers in Australia
Purchasing your first home is a significant milestone, but the path to homeownership in Australia can seem daunting due to the high property prices and competitive market. However, with the right ...Read more

How to budget
Crafting your safety net: Building an emergency fund in Australia
In uncertain times, having an emergency fund is more than a financial buffer—it's peace of mind. For Australians looking to start their journey towards financial security, building an emergency fund ...Read more

How to budget
The psychology of saving: How to train your brain to cut expenses
Saving money is more than just a practical financial strategy; it’s a mindset that requires discipline and a reorientation of one’s approach to spending and savings. Read more

How to budget
5 budgeting apps that will transform your savings
In the digital age, managing personal finances has shifted from pen and paper to smartphones, with budgeting apps becoming invaluable tools for those looking to save money. With an array of features ...Read more

How to budget
Handy tips to send your money worries to the chopping block
Sorting out your finances can be easier said than done, especially in the aftermath of the short Easter break when distractions are unrelenting and stress levels are worked up at fever pitch. Read more

How to budget
6 ways to clean up your personal finances
Bringing your spending under control can sometimes feel daunting. Here are some ways to start. Read more

How to budget
5 ways to be smarter about your money in 2021
Start the new year on a high note by stepping away from bad financial habits. Read more

How to budget
The psychology behind saving: Understanding and overcoming common barriers
Saving money is a fundamental aspect of financial security, yet many people find it difficult to set aside a portion of their income regularly. Read more

How to budget
Smart saving tips for first home buyers in Australia
Purchasing your first home is a significant milestone, but the path to homeownership in Australia can seem daunting due to the high property prices and competitive market. However, with the right ...Read more

How to budget
Crafting your safety net: Building an emergency fund in Australia
In uncertain times, having an emergency fund is more than a financial buffer—it's peace of mind. For Australians looking to start their journey towards financial security, building an emergency fund ...Read more

How to budget
The psychology of saving: How to train your brain to cut expenses
Saving money is more than just a practical financial strategy; it’s a mindset that requires discipline and a reorientation of one’s approach to spending and savings. Read more

How to budget
5 budgeting apps that will transform your savings
In the digital age, managing personal finances has shifted from pen and paper to smartphones, with budgeting apps becoming invaluable tools for those looking to save money. With an array of features ...Read more

How to budget
Handy tips to send your money worries to the chopping block
Sorting out your finances can be easier said than done, especially in the aftermath of the short Easter break when distractions are unrelenting and stress levels are worked up at fever pitch. Read more

How to budget
6 ways to clean up your personal finances
Bringing your spending under control can sometimes feel daunting. Here are some ways to start. Read more

How to budget
5 ways to be smarter about your money in 2021
Start the new year on a high note by stepping away from bad financial habits. Read more