Three Ways to Ensure your Business is Viable Post COVID-19
In 2020, three quarters of Australian businesses accessed COVID-19 related support measures, with 55% accessing wage subsidies and 38% accessing other government support measures. Given these support measures are expected to be permanently repealed in 2021, It’s important to be informed about the full extent of COVID-19’s impact on your business. Here are three ways to ensure your business is still viable:
Keep Your Books & Tax Lodgements Up to Date
Keeping an accurate record of all your business’ books and expenses and ensuring that these are correctly lodged with the tax office is the best way to know your business is viable. A business that keeps its books up to date will know straight away if their profits have dropped and they are still profitable. Additionally, the tax office is often the first creditor to pursue unpaid taxes from failing businesses.
Seek Professional Financial Advice
Accountants and other financial advisors are able to provide sound advice about the business’ cash flow and whether the business is profitable. Financial advisors can also assist in restructuring the business and its debts to avoid a potential insolvency.
The Federal government’s small business insolvency reforms have set up a restructuring process for small businesses that allows companies to continue trading as the restructuring practitioner develops and proposes a plan to the creditors.
Pay Invoices on Time
Overdue invoices, payment plans and the failure to respond to demands are all indicators of insolvency that the Court will look at when considering a business’ solvency. To avoid being presumed insolvent by the Court and incurring unnecessary legal costs, businesses should ensure their invoices are paid on time.
If you would like to discuss how we can assist your business post COVID-19, please contact Levi Smouha at Rostron Carlyle Rojas Lawyers on (07) 3009 8444.
Contact our insolvency lawyers now to discuss your options in a no-obligation consultation with the experts. We will guide you, step by step and ensure the best possible outcome for your circumstances. Call our Brisbane lawyers on (07) 3009 8444 or our Sydney lawyers on (02) 9307 8900. Alternatively, click here to get started.
The blog published by Rostron Carlyle Rojas is intended as general information only and is not legal advice on any subject matter. By viewing the blog posts, the reader understands there is no solicitor-client relationship between the reader and the blog publisher. The blog should not be used as a substitute for legal advice from a legal practitioner, and readers are urged to consult RCR on any legal queries concerning a specific situation.