Basics of Div 7A
As the owner of a private company, it’s normal – and completely legal – to borrow money from your business. However, thanks to Division 7A of the Tax Act, failing to properly record that loan could land you in some serious strife come tax time. Here’s how it works, and how to avoid its impact […]
Can the ATO wind me up?
Unpaid tax debts can lead to serious consequences for businesses that are having problems keeping up with their tax debt. When it comes to enforcing debt, the ATO has a number of options, including pursuing wind-up proceedings in court. While the ATO will not pursue the wind-up course of action if a company has repaid its […]
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 […]
The Value of your Accountant
Many businesses, especially smaller businesses, aren’t committed to consulting their accountant on a regular basis. This can turn out to be a costly error over the longer time when in fact a trusted and competent accountant helps you understand what’s happening in your business. The advice that your accountant gives you can help you avoid […]
Non-bank finance
Getting access to adequate financing is often the biggest hurdle for entrepreneurs and existing business. A lack of finance constrains your operations and raises the risk of insolvency and other financial issues. As an entrepreneur or business owner seeking new financing, it’s time to expand your horizons and discover other exciting alternatives for financing your […]
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, […]
