Tax and Airbnb
Airbnb is one of many examples of the “sharing economy” — connecting buyers (users) and sellers (providers) through a facilitator that usually operates an app or a website. Airbnb acts as this facilitator by allowing individuals, referred to as “hosts”, to rent out a room of their house or their whole house for a short-time […]
Is your Div 7A Compliant?
Division 7A of Part III of the Income Tax Assessment Act 1936 (ITAA36) is an integrity measure that was designed to prevent companies from making tax-free distributions to shareholders or their associates. This can occur where distributions of profit are disguised as loans or other transactions. This effectively allows the shareholder or their associate to […]
8 tips for managing business finance
Keeping track of your business finance is critical, regardless of whether you run a small business or a large enterprise. Tracking financial metrics may be boring or tedious for some people, but it’s absolutely essential. Why? Because it enables you to know exactly what’s going on with your sales and expenses, and therefore make smarter […]
Liquidation – the first step
Liquidation can be an option for companies experiencing financial difficulty, and it may be the last resort for companies that need to be wound up. In Australia, liquidation applies only to companies, and there are a few types of liquidation – each with different first steps. If your company is entering liquidation or you’re considering […]
Difference between Administration, Receivership or Liquidation
If you’re a business owner or company director, you’ve probably heard of terms such as receivership, administration, and liquidation, but what exactly do they mean? These concepts refer to specific stages for companies that are close to being or are insolvent, and that have entered a period of external administration. There are significant differences between […]
Basics of a DOCA
Designed to maximise the chance of a company to continue its business, a Deed of Company Arrangement (DOCA) is a binding arrangement between the company and its creditors. Another purpose is to ensure that creditors receive a better return in the case of the company being wound up. Essentially, the DOCA helps the company avoid […]
Myth of a Liquidation
Liquidation is the winding up of your business with assets sold to pay creditors. While it’s a final option for shutting down the business, for struggling businesses this step can come as relief. However, myths still persist about liquidation. If you’re considering liquidation as an option for your business, it’s vital to debunk these so you […]
So I’m bankrupt!
Practical action steps for bouncing back Taking practical action steps is as vital as having a positive mindset. Plan for the future with a realistic budget and start rebuilding your credit history by paying your bills on time. Realise you can bounce back after bankruptcy. Whether you’re dealing with personal bankruptcy or a company insolvency, […]
Guide to a turnaround
Failure is the norm rather than the exception for businesses. The signs can be plain: the business isn’t expanding and you’re having trouble meeting financial obligations. Or the competition is getting intense in an oversaturated market. At this stage, acting quickly gives your business the best chance of recovering, avoiding mounting debt, and returning to profitability. There are […]
Business Restructure
Business restructuring is often used by distressed businesses to overcome their financial and operational issues in order to return to profitability and growth. In challenging markets, business restructuring can help businesses overcome issues like poor cash flow, thin profit margins, and stagnating growth. Developing a restructuring strategy that reflects your business needs is critical, as […]
