Your hot questions

Small business life is great fun, but it also comes with a lot of pressure, so we thought we’d cover some of the hot questions we’ve been hearing recently.

Possibly the hottest question is “what’s going to happen with interest rates?” The answer is they’ve already gone up, and they’re almost certainly heading up again in the near future.

So should you fix your loans now while rates are still near record lows? That depends on your situation and how your debt is structured. Definitely seek advice.

The other big issue at the moment is inflation. The reality is the cost of everything is going up, whether it’s petrol, groceries, or staff wages. As a business, this is going to impact your profit margins, if it’s not already. This can lead to cashflow issues and might lead you to consider what assets you can offload to reduce debt and increase cashflow.

One of the drivers of wage increases is staff shortages. The reality is that with decreased migration, we’re running out of people to fill jobs, which means the power switches to the employee and allows them to demand higher wages and benefits.

One answer to this is to look at what you can automate. Another is to look at outsourcing or employing overseas.

As we approach the end of financial year, obviously tax becomes a topic of conversation. What am I liable for? How do I minimise my tax liability? What does the next 12 months look like? All questions you can and should discuss with your accountant.

And the final spectre that still hovers over us is COVID, with tens of thousands of new cases every day, we’ve all understandably tired of talking about it, but it’s still impacting supply chains, schools and businesses in a big way.

Managing this is still a huge challenge,  but there is still some government assistance available – if you’re being impacted, you should look at what you’re eligible for.

There’s a lot going on in the world at the moment, and a lot of complex moving parts. If we can help shed some light on it, or assist you in any way, please get in touch.