There’s no denying that approaching insolvency is a problem that requires immediate attention. While it can feel a little scary, the best way to fix it quickly and simply is with a targeted, focused response. In other words, don’t push it to the back of your mind and hope that it handles itself. With just a few small changes to the way that you do business, you can put your affairs in order and start to better protect your investments.
Whether you’re struggling to meet monthly bills, being buried by an unsuitable administrative process, or desperately lacking in credit, there are steps that you can take to turn the situation around. It all starts with a willingness to scrutinise your business practices and the way that you communicate with debtors, in order to usher in improvements.
Get in Touch with the Tax Man
One of the most common reasons for liquidation is unpaid taxes. The problem is that the Australian Taxation Office (or the ATO) can issue a notice of enforcement if they believe that a business is dealing with long term financial troubles. So, it is imperative that you get on the phone or organise a face to face meeting with an advisor as soon as possible.
It can be nerve wracking, but the ATO is always much quicker to take forceful action if a company doesn’t appear to be cooperating.
Implement a Better Payment System
For larger businesses, keeping track of ingoing and outgoing payments is no easy feat. However, it is an essential requirement of operating and making transactions, neither of which you should really be doing if you can’t guarantee that balances can be settled.
These days, digital systems are fast replacing paper invoices, because they can’t be lost or damaged and it is much easier to pick out relevant statistics and isolate transaction processes.
Seek Advice from a Qualified Accountant
You should, of course, already have an accountant that you can trust. In some cases, it also helpful to speak with a specialist insolvency practitioner too because they can often spot potential lines of credit that you have missed or are unaware of. It is their job to find ways to open up cash quickly, without putting the business at greater risk, so it is worth seeking advice from a source of this kind. The solution could be as simple as offloading unused assets.
Acknowledge the Crisis Right Away
The main reason why so many businesses crumble is not necessarily because they begin to approach insolvency – after all, everybody has hard times – it is because the owners bury their heads in the sand and hope it will fix itself. This won’t happen and you’ll only get into deeper trouble if you don’t start working through the issues right away. Yes, it can be intimidating and very worrying, but positive action leads to positive results.
Seek advice, questions, and stay on top of what is happening in your company.
How to Find the Right Insolvency Advisors for You
If your business is in financial trouble, take a breather and spend some time with a qualified insolvency advisor. They can give you some valuable information on where to go next and what needs to be done. All you need to do is ask for help.
The best way to find a suitable account or insolvency advice service is to speak directly with representatives, until you find a company that has experience dealing with your industry.