As a business owner with a monetary interest in your company the last thing you want to see is your business struggling financially or on the verge of going under. Business recovery and restructuring, if implemented at the right time, can help save your business from winding up. There are many things that can be done to help turnaround your business and get it back on track.
Save your Business
Cash Flow Solutions
Business turnaround is largely due to understanding and improving cash flow. This must begin with a properly structured balance sheet. Some solutions that can improve your cash flow are:
Financing of existing assets
Injecting External Capital
Informal arrangements between the company’s creditors
Sale of the business or part of the business
Voluntary administration (but only as a last resort)
This is important in order to get the business back on track, pay back debts and help the business to at least break even with the possibility for future growth.
It is important you understand what Goods and Services Tax (GST) and Pay As You Go tax (PAYG) are. Negotiations are able to be made with the ATO if your business is struggling to make payments. This could be for a reduction in your overall payment or negotiating a payment plan.
Payroll Tax Payments
Business recovery can help you to meet your financial obligations with The Office of State Revenue (OSR) and state taxes such as payroll tax.
Workers Compensation Payments
If you are having difficulties paying your insurance premiums, you can negotiate directly with your insurance company in order to set up an instalment payment scheme. Be sure to pay the appropriate premiums, because failing to do so could cause problems if you are required to lodge a claim or if you are ever required to submit to a Workers Compensation Audit.
Third Party Claims/Litigation (Supplier Claims)
Business recovery can help to solve issues such as suppliers not delivering goods, debts owed to your business as well as business’s debts to others.
Problems or disputes with
Financial Institutions/ Banks
Leases & Landlords
As part of your business recovery, negotiations can be made with the people or businesses you are having problems with. By setting up a more suitable payment plan, your business should able to pay back its debts in a way that keeps the business still functioning but also keeps the other party happy.
A business restructure is when a business decided that it will change from being, for example, a Sole Trader to a Proprietary Limited Company. This change depending on the circumstances of the business is usually done because of financial worries and because of possible tax savings that may result from the restructure.
Business restructuring can be a great way to revive your business and possibly reduce taxation obligations.
The 6 main business structures are:
Proprietary Limited Companies
Sole Traders, and
If you experiencing business troubles it might be worth considering changing your business structure, sometimes it can be the only solution for a company under serious financial pressure. If your business is suffering financially it is important to act immediately! If you start to turnaround your business before things get out of hand you can prevent time, effort and money being wasted on an insolvent business.
Here at The Quinn Group we are mindful of the costs associated with legal proceedings, and will do everything to minimise all unnecessary costs in a time of financial hardship, whilst still giving your business the best advice for the present and the future. We are able to assist you in your business recovery and restructuring in order to get you and your business back on track. Visit The Quinn Group homepage and click on the Business Turnaround Specialist link to visit our dedicated website. For any queries relating to this article or any other business accounting or legal advice click here to submit an online enquiry or call us on 1300 QUINNS (784 667) or on +61 2 9223 9166 to book an appointment.