Running a business isn’t easy, and there may be occasions where you need to know how to manage financial distress. If you are in such a situation where your business is no longer making the money it needs to be making, there are a few things you can do to lessen the blow should you need to dissolve your business entirely – as you may be personally impacted or require to answer to other issues should you not be adequately prepared. Don’t forget that tax advisors can help – and here are a few ways you can help yourself.
Keep Your Records Updated.
Keeping a clear picture of what’s happening with your business financially will not only help you set your priorities straight, but will also inspire confidence in your ability to navigate financial distress.
Pay Your Taxes.
Always, always, always pay your legal obligations first – never hold back cash if you’re yet to pay taxes!
Make Your Debts Clear.
This isn’t to say you should clear them unless you can – but honesty regarding the debts you owe will be valued by potential sources of income who may help you out of a hole.
Don’t Dismiss Bankruptcy!
Bankruptcy is a harsh word, but it needn’t be – declaring bankruptcy can effectively wipe the slate clean – though it will affect your credit rating for years to come.
You’re going to need to work out whose services are essential to the running of your business – keep these creditors paid until the last possible moments.
Take a Deep Breath.
Tax advisors and accountants in St Albans, such as Finsol Tax advisors, are here to help you manage your struggling business – whether it means helping you cleanly tie up and close down trade, or even to resurrect it, we will look at the options with you and provide legal advice on how you can easily, and painlessly, make a break from financial distress.