Business recovery or liquidation? Understand your options early
‘We’re all in this together’, has been a common catch cry during the pandemic, but as 2021 nears its end, some business owners may be feeling more alone than ever and unsure of their options.
This month the RSM Restructuring and Recovery team puts the spotlight on Richard Stone, an RSM Partner based in Sydney.
He shares his views and experience about why it’s critical that business owners understand their options now, rather than be left in the dark, wondering what to do next.
In a holding pattern: not sure what to do next
Richard has been speaking with business owners and directors who are concerned about a time when business support measures may be phased out completely.
“There are definitely plenty of concerned business owners out there who are craving some more certainty. They want to understand what their options are now, so they can make informed decisions about whether to create a business recovery plan for the future or consider the need to liquidate their business,” he said.
Business as usual?
For many business owners it’s anything but BAU,
According to a recent The Australian article, the ATO “is pulling back on the soft touch” approach to compliance that’s been used during the pandemic.
Major players in the Australian business landscape, including banks and the ATO, adapted to the pandemic environment by providing much-needed relief measures to business owners, including loan deferrals by the ‘big four’ banks and Business Grant and Support payments by the ATO.
But according to Elinor Kasapidis, Senior Manager, Tax Policy at CPA Australia who was quoted in The Australian, “The ATO has signalled that they’re getting back to business as usual. That means that things like late lodgements and payment deferrals are now more fact-based and individual, rather than a blanket approach.”
Warning notices to businesses with tax debts over $100,000 that are 90 days or more overdue, were distributed by the ATO in August this year.
Gain a new perspective on your financial difficulties
“We know that right now, it’s a worrying and uncertain time for lots of people. We also understand that many SME business owners are emotionally attached to their business, it’s not just a job to them, it can be a big part of their life and their identity. We help them step back and take a high-level assessment of their current financial position, the reasons for financial difficulty and what can be done to rectify the situation,” Richard explained.