It’s important for SMEs to regularly review their tax position and to set up strategies to improve their cash flow issues and stay on top of their tax obligations. The period leading up to the next BAS tax payment can be a particularly challenging time for any SME business, it is easy to get caught out and even the most experienced business owners can be caught out, especially with tax debt.
If Tax Debt is impacting your cash flow, it is key to consider alternative forms of financing such as debtor finance. Debtor finance providers can pay up to 85% of outstanding invoices usually within 24 hours and also follow up your debtors payments for you, helping to improve your cash flow to meet your tax obligations, and also ensure you avoid other burdens and penalties.
Failure to address outstanding Tax debt can result in early intervention by the ATO leading to Directors Penalty Notices and legal action to wind up the business.
The key root cause of tax debts is often cash flow management, and business owners should proactively seek solutions to manage cash flow to manage ATO tax and payment arrangements but also to assist business owners to restore their cashflow and trading position.
About Cashflow Recovery
Cashflow Recovery helps individuals, families and businesses with strategies and solutions to boost Cashflow, Working Capital and Finances quickly and easily. Our solutions help create income, acquire assets, boost sales and reduce costs.
If you have tax debt or are looking for a Cashflow Solution to help your business, contact Cashflow Recovery on 1300 885 244.
About the Author
Simon McGrath who has over 30 year’s experience in Finance, Property and Capital Markets. He has run several financial services businesses and is experienced at senior leadership and management levels. Simon is a member of the Turnaround Management Association of Australia, the Finance Brokers Association of Australia, and The Export Council of Australia.
Simon spends his time passionately connecting people to financing solutions that can improve their lives and financial security.