Alleviate those Director Nightmares with these Six Tips on Safeguarding your Business

Insolvency Nightmares? Can’t Sleep? Alleviate those Director Nightmares with these Six Tips to Restoring your Sleep and safeguarding your Business

1. Schedule meaningful meetings with your accountant to plan performance

Schedule regular meetings with your accountant to plan performance. Your accountant or accounts department are important assets in keeping your company afloat. Their role within the company involves identifying the cash flow implications of financial issues that they foresee or that the company is experiencing. Communicating with your accountant and accounts department will help you keep on track with your spending (and your directors’ duties to stay informed about company matters!). The accounts department should also be able to assist in formulating payment plans and chasing debtors to ensure your company’s solvency before invoices become issues.

2. Stay on top of supplier payments

Known when what is due and when. Manage the relationship with suppliers. Ensuring payment terms are maintained will ensure that there are no delays in deliveries or services provided.

Aim to pay supplier invoices as and when they fall due. If there is a dispute regarding a supplier invoice, contact our office immediately. Otherwise you may be setting yourself up for failure and to the risk of a statutory demand- which is a legal document, which requires payment within 21 days, otherwise the that creditor may rely upon your failure to pay it as a reason that your company is insolvent and proceed to wind up the company.

3. Communicate with your suppliers

If you cannot pay the entire amount of an invoice immediately, it is important that you communicate with your suppliers where possible. There are risks in creating evidence that you are unable to pay debts when they are due and payable.

Contact our office to discuss any concerns that you have with Debt Recovery or Contract Disputes with a Specialist.

4. Maintain accurate books and records

Maintaining accurate financial logs is key to staying on top of your invoice, both the invoices that you need to pay and the invoices that are payable to you. It is only through accurate books and records that you will truly understand the financial health of your company.

5. Avoid Aged Debt

Aging accounts inhibit cashflow. No cashflow will limit your company’s options.

Focusing on the work in progress and ignoring aged debt is disastrous.

Let us help you manage the aged debt. Contact our office to discuss any concerns that you have with Debt Recovery or Contract Disputes with a Specialist.

6. Insolvency Concerns- Writing on the wall?

If you suspect insolvency, have been served with a statutory demand, it is imperative that you contact our office urgently to seek advice from a Specialist.

Written by Mark Streeter

The Director of Streeterlaw, Mark has been practicing Law since 1994. He has attained his Masters of Law in 1999 and in 2006 was awarded his Specialist Accreditation in Commercial Litigation. Mark is a member of ARITA, a graduate of the AICD and a member of AICM. A member of STEP, Mark enjoys working in the area of Wills and Estates. In 2020 Mark is the Chair of STEP NSW.

Call us on 02 8197 0105 to book an appointment with Mark Streeter!