Insolvency

If you’re facing challenging times, financially, ask someone for help. The sooner you do it, the quicker you can get on with your life.

Tough times call for tough decisions.

ABS can help step you through the scenario’s and support your decision-making process with an informed analysis.

If Monday morning’s have become unbearable, it is a possible warning sign that you’re due for a financial check-up.

An initial meeting with a professional may be a big release, or help you to re-focus and tackle problems head on.

Get some guidance, even if it is early-stages on the radar.

Continuing with things might make it worse for yourself in the longer term. For instance, entering into a payment plan with the ATO might render you personally liable for existing and/or future debts – take care, get some professional advice first.

Private companies which cannot meet their debts as and when they come due, may need to consult with a professional accountant.

This will help you understand your Directors duties and more specifically, fiduciary duties which you owe to the company and its stakeholders.

An insolvency expert will be able to guide you through this process and help to understand what is involved.

Normally, they will take responsibility during a phase of “Administration” where they act as Administrator, to assess the financial and general merits of the business, before determining which is the best course of action for stakeholders.

There may be more than one avenue to pursue, with prospects including business sale, or winding-up, which is known as “Liquidation” and quite commonly, the Administrator’s role becomes one of Liquidator.

This is complex. There are many layers of company law, and this is interwoven with how it translates in practice.

Talk to a professional about the practical realities, and consider the best options for the time and situation.

Professional advice from an experienced accountant may unlock opportunities that you weren’t aware of, particularly government assistance, grants and subsidies.

Speaking with key stakeholders including the ATO may allow consideration of special circumstances, to work with them and all other creditors to find solutions.

Accountants are not medical practitioners. But meeting with a qualified chartered accountant at ABS, or a specialist to whom we might subsequently direct you, is an important step.

You will only remain at your most effective if you are informed with solid and independent advice, so that you can best utilise your business acumen.

Armed with the facts and sound advice, you will have taken the most important step in ensuring you make informed decisions that affect your own personal well-being, and those of your family and colleagues.