Chapter 7 : Webinar on Short-Time Work (in Austria)
For many companies, short-time work is one of the solutions to overcome the liquidity bottlenecks that have arisen due to turnover shortfalls, bottlenecks in the supply chain, compliance with Corona protection measures and many more.
Chapter 1 - Introduction Cash flow planning
Chapter 2 - Why Cash flow planning at all ?
Chapter 3 - Quality of the Cash flow planning
Chapter 4 - How to create a Cash flow planning?
Chapter 5 - Short-term Cash flow planning
Chapter 6 - COMMITLY common procedure
More than ever, entrepreneurs and business managers are facing numerous and major challenges. They are faced with the difficult task of putting their companies on a stable footing in a phase with numerous but unknown variables.
For many Austrian companies, short-time work is one of the solutions to overcome the liquidity bottlenecks that have arisen due to turnover shortfalls, bottlenecks in the supply chain, compliance with Corona protection measures and much more.
Can (Austrian) companies really afford short-time work now?
Helga Krachler and Manuela Rott took a closer look at the effects of short-time work using an example and put the related "cash flows" on a timeline until June 2020.
- Essential to this calculation are the double salaries, which are usually paid in June.
- The holiday allowance is calculated on the basis of the remuneration BEFORE short-time work.
- It should also be noted that the date when the short-time work contribution will be paid by the AMS is not yet entirely clear (beginning of April 2020).
- Many companies suffer massive drops in turnover in the period April to June - some up to 100%. It remains to be seen how quickly sales will rise again after a gradual opening.
- Incoming payments of open customer invoices will tend to lengthen rather than shorten. The risk potential of defaults must be reviewed and assessed on an ongoing basis.
- Stocks may have been built up before the crisis to avoid supply bottlenecks around Easter. The full stock has to be financed.
- Negotiations with suppliers about payment conditions, deferrals or possible contract amendments only take effect with a time delay.
A company with a strained liquidity situation at the beginning of the "lock-down" can therefore quickly find itself in a precarious situation, even threatening insolvency!
Especially in such a situation, it is important to run through all possible scenarios internally and to visualise the effects on the cash flow for the next few months. This is the only way to identify new sources of income, cost-saving potentials and financing options that you may not have thought of before.
Manuela Rott has used "Commitly" as a tool for Cash flow planning :
- With the Commitly Cash flow planning , it is possible to display and continuously update the income and expenditure already incurred and the available funds at the touch of a button.
- Commitly enables quick and easy recording and adaptation of planned income and expenditure on a weekly and monthly basis.
- The handling is self-explanatory and makes it possible to focus on the content components.
- The condensation of data ensures an overview. Discussions with the bank, investors and/or funding bodies quickly lead to the desired result and the necessary decisions.
- Detailed questions on specific income or expenditure categories can be answered easily, as the details behind them are made transparent by simply clicking and "drilling down" to keep everything in view.
To answer the question whether Austrian companies can afford short-time work, Manuela Rott and Helga Krachler with Edith Neudhart present the following 5-point check:
- Get the numbers right
It is important to have a complete and accurate database available in a timely manner. - Consider alternative and/or new sources of income
One of the opportunities of the COVID-19 crisis is to offer new products and services to the market and to run through different scenarios internally and test them for Marchability. - Assess your situation realistically
The Corona crisis involves numerous uncertainties. It is therefore all the more important to have clarity about the available liquid funds and - depending on the scenario - the development of the cash flow with the respective probability of occurrence. - Calculate, calculate, calculate!
It is necessary to check how high the financing needs are and which additional financing aids and subsidies are available in order to keep the impact of the Corona crisis on your company as low as possible. - Get professional support
The critical view from the outside and recommendations for immediate measures give entrepreneurs and business managers time to concentrate on other essential things.
Disclaimer:
The contents of the broadcast and the video are for general information purposes only. They do not constitute legal, accounting, tax or other professional information, recommendations or advice. The contents are not intended to serve as a basis for decision-making and are not suitable for this purpose. In particular, the contents cannot replace individual advice by competent persons taking into account the specific circumstances of the individual case.
The contents have been compiled with due care. Nevertheless, we do not assume any liability, for whatever legal reason, for its correctness, topicality and/or completeness.
The persons mentioned are members of a network. Each member of this network is an independent legal entity.
Helga Kracher
The future of work, corporate strategies, personnel controlling and the culture of failure are all part of Helga Krachler's consulting portfolio.
Make use of her knowledge in these areas as well as in labour leasing, labour law, change management including insolvency handling and career planning and development.
Manuela Rott
We know the daily work of CEOs, financial managers and entrepreneurs from our own experience with international companies and NGOs.
We support the digital transformation.
Automate processes, network data and present it in real time and make teams fit for new challenges.
Cash flow planning made easy - All decisions firmly under control.
COMMITLY is your software tool for better cash flow management - developed by financial experts and entrepreneurs who know what is important when it comes to cash flow and Cash flow planning.