An emergency incident in your region or local area will inevitably have a financial impact on your business. One of the first actions to take after a crisis event occurs is to prepare the business's finances to cope with the months or possibly years ahead.
The extent to which your business will be affected by an emergency will depend on:
- the nature and expected duration of the event
- your financial reserves and access to other funding sources
- whether the business can keep trading
- whether customers continue to come to your business
- the actions you take to reduce expenditure.
What type of crisis event is it?
To help work out the financial implications of a crisis event and the best response, it's important to be realistic about how severe the impact of the emergency will be, and how long it's likely to continue.
The Financial responses to different emergencies (PDF 39.26 KB) outlines the different types of emergencies and appropriate financial responses to each.
Find out about the financial assistance that may be available to you, for example tax cuts or deferment of tax installments, business grants, low-interest loans or business advice.
Contact your financial institution as soon as possible to discuss your financial situation and possible emergency relief and support measures.
- The Australian Taxation Office provides a range of support measures to assist you in a crisis event.
- The Australian Financial Complaints Authority has advice for businesses.
As soon as possible, assess whether the emergency incident has destroyed:
- any of the business's records such as receipts, invoices, financial computer software, bank statements, licenses and accreditations
- your personal records such as birth certificates, licenses, credit cards
To assist you with the recovery process, you will need to make time to organise replacements.
Some of these documents may be easily replaced if you contact the issuing organisation. Others may be irreplaceable and you may need statutory declarations or other actions to protect the legal position of the business.
Prepare a crisis cash flow budget
When a crisis event first hits your business, an important step is to develop or revise your budget for the business.