Payment Plan - Insolvency trick or treat?
The one thing that the ATO wants a taxpayer to do is to refrain from disengaging. If the ATO can keep a dialogue going, they can encourage lodgement compliance and remain aware of the true debt position. As a result, the ATO has encouraged taxpayers to reach out when they have a cashflow problem and seek a payment plan. For debts less than $200K, you can achieve this simply with an online application. During COVID, considerable lenience was s...
Why is the Working Capital Cycle important?
Working capital is a common measure of a business’ overall health – it’s an indicator of whether a company is able to pay off its short-term liabilities or not. Here we provide information about the working capital cycle and how to manage elements of the cycle to improve working capital within a business. What is working capital?Working capital is a measure of the cash tied up in the day-to-day running of a business. On one hand, it can be se...
How to manage Working Capital
Although it’s easy to understand what working capital is, it is more difficult to determine how much working capital your business actually requires. This is because your working capital needs will vary depending on several factors. These factors include: Your industry Operating cycle Overall efficiency Cash flow Inventory management Business goals In addition to these components, your business has probably been affected by the COVID-1...
Getting your Working Capital Ratio right
Working Capital – Get the balance right.There’s no denying that running a business is an exhausting and complextask. There’s so much to keep up with, including peaks and falls in themarket, shifting consumer behaviors, and new developments in theindustry. At any one point there’s so much to keep up with that it’s notuncommon for things to start to slip. One thing that you never, ever want toslip, however, is your cash flow and your capital manage...