By Tina Zawila
From time to time we meet clients who have found themselves in some form of financial difficulty, generally with the ATO, their bank, their suppliers, or they are simply struggling to make their business work as it should.
If the client seeks help early, we can usually nip things in the bud, suggest some changes to business strategy, enter into new financial arrangements and generally avoid a serious financial issue.
However, there are times when clients do not seek advice early (for whatever reason) and by the time we become involved, things are quite difficult. We have seen the ATO issuing garnishee notices on bank accounts, and clients using finance from what is known as “lenders of last resort” with effective interest rates of 67 to 69% pa – yes you read that rate correctly! We can still help in these scenarios, however, a lot more effort and time will be needed to turn things around.
Don’t let this happen to you! They say ignorance is bliss, but ignoring a problem does not mean it’s not happening. And the sooner you address the issue the better. Time does not heal financial wounds, it usually exacerbates them.
If you are new to business, seek advice early. Make sure you understand your business structure – there is a difference between operating as a sole-trader and being a director of your own operating company. You should also understand your taxation obligations including income tax, GST, PAYG, and superannuation for employees and/or yourself.
If you are an existing business and notice that you are struggling to pay your suppliers on time, pay wages, meet loan repayments or taxation liabilities, seek advice immediately.
Don’t let the situation escalate and don’t feel like you need to solve this on your own.
Early intervention gives you the best chance of working through the issues and finding workable and practical solutions.
If you are struggling with a financial issue, call the professional team at Sothertons today, on 49721300 and let us help you with strategies to improve your business performance and financial position.