Small business lifeline saves the day
How a reach-for-the-stars entrepreneur avoided crashing down to earth
In the beginning
By the time she left her day job to set up her own business, Allison (not her real name) was an entrepreneur in a hurry. Now in her early 50’s, she had acquired two rental properties a few years earlier through an aggressive negative gearing strategy. However, with the fledgling business monopolising Allison’s time, it was proving increasingly difficult to stay on top of her finances.
The property loans were due to come off favourable fixed rates. Allison was two years behind with her tax returns and owed the ATO money. Worryingly, her back office lacked attention, and as with many business owners, she threw all her energy into doing what she does best, meaning she was unaware of how her business was travelling, which in turn led to “survival mode” decision-making. All in all, Allison was beginning to question not just whether she was going to stay solvent but why she decided to “shoot for the stars” in the first place.
By the time she left her day job to set up her own business, Allison (not her real name) was an entrepreneur in a hurry. Now in her early 50’s, she had acquired two rental properties a few years earlier through an aggressive negative gearing strategy. However, with the fledgling business monopolising Allison’s time, it was proving increasingly difficult to stay on top of her finances.
The property loans were due to come off favourable fixed rates. Allison was two years behind with her tax returns and owed the ATO money. Worryingly, her back office lacked attention, and as with many business owners, she threw all her energy into doing what she does best, meaning she was unaware of how her business was travelling, which in turn led to “survival mode” decision-making. All in all, Allison was beginning to question not just whether she was going to stay solvent but why she decided to “shoot for the stars” in the first place.
How we helped
Following our appointment as accountant and business adviser, we acted swiftly to get Allison’s financial house in order.
Top priority was obtaining relief from the rental property loans, which we did by successfully assisting her application for financial hardship. To address the tax situation, we had to get her books up-to-date and ascertain the amount of tax outstanding, before negotiating a payment arrangement with the Tax Office.
Happily, Allison proved to be a natural learner and is now engaged in her Xero accounting system, is making regular payments off her tax debts and keeping up to date with the bank.
Following our appointment as accountant and business adviser, we acted swiftly to get Allison’s financial house in order.
Top priority was obtaining relief from the rental property loans, which we did by successfully assisting her application for financial hardship. To address the tax situation, we had to get her books up-to-date and ascertain the amount of tax outstanding, before negotiating a payment arrangement with the Tax Office.
Happily, Allison proved to be a natural learner and is now engaged in her Xero accounting system, is making regular payments off her tax debts and keeping up to date with the bank.
The outcomes
Throughout the process, we were there to support Allison, acting as a sounding board for significant decisions and as a guide to anticipate upcoming deadlines and tax commitments. All in all, Allison now has the confidence, support and knowledge to achieve her goal of financial independence. It’s been exciting and deeply rewarding to help her on her way.
Throughout the process, we were there to support Allison, acting as a sounding board for significant decisions and as a guide to anticipate upcoming deadlines and tax commitments. All in all, Allison now has the confidence, support and knowledge to achieve her goal of financial independence. It’s been exciting and deeply rewarding to help her on her way.
In her own words
As Allison says, “Looking back, it’s scary how much I didn’t know about running a business and managing money. Hansens came along at the right time. With their help, I was able to learn what I clearly didn’t know enough about. It’s all working so much better now, and I’m really excited with what’s ahead.”
As Allison says, “Looking back, it’s scary how much I didn’t know about running a business and managing money. Hansens came along at the right time. With their help, I was able to learn what I clearly didn’t know enough about. It’s all working so much better now, and I’m really excited with what’s ahead.”
