COVID-19 challenges and seeking advice for small business owners

Many businesses are experiencing financial stress due to the conditions created by the COVID-19 pandemic. Small business owners need to take action and properly manage financial and operational difficulties.

It’s important for small business owners to:

  • keep records and reporting up-to-date, and ensure they are across the day-to-day management of the business
  • closely monitor the business’ cash reserves and ensure that cash flows are sufficient to avoid trading insolvent

It’s also important that small business owners seek advice from advisers they trust. Some things to consider when seeking advice include:

  • Is the adviser a member of a professional body and are they subject to a code of conduct?
  • Are they regulated by ASIC, AFSA, the Australian Taxation Office or other government agencies?
  • Is the adviser listed on ASIC’s banned and disqualified persons register or have they entered into an enforceable undertaking?
  • If I receive bad advice or suspect misconduct, can I lodge a report with a professional body or a regulator?
  • Do I need help to better understand my legal obligations and understand how I might be personally liable for my decisions?
  • Is the adviser the most suitable to assist with the problem I have?

If something doesn’t seem right, consider getting a second opinion.

ASIC has a number of resources and videos to assist small business owners to protect their business.

Visit asic.gov.au/small-business for more information.