You may find it challenging if you are a small business owner struggling with outstanding debt with the Australian Taxation Office (ATO). However, there are some steps you can take to get ahead and take control of your debt effectively. Here are five starting strategies to help you manage outstanding debt with the ATO and be on top of your business finances.
- Open Communication: Establish open communication with the ATO. Reach out to them and discuss whatever your situation may be, honestly. They often offer business owners payment plans or other assistance options.
- Prioritize your Debt: Assess your outstanding tax debt and determine its priority. Focusing on the most recent debts means you can likely avoid further interest charges and penalties.
- Seek help from a Professional: Consult with a tax professional or financial adviser who specialises in dealing with the ATO. They can help you navigate the complexities of tax debt and negotiate on your behalf.
- Negotiate a Payment Plan: Propose a realistic payment plan to the ATO based on your financial situation. You will need to stick to the agreed-upon payment schedule to avoid complications.
- Review Business Operations: Identify areas to cut costs and increase revenue. Implement cost-saving measures and explore new revenue streams to generate funds for paying off your tax debt.
A mortgage broker can provide guidance on getting a loan if a payment plan can’t be arranged with the ATO. Get in touch with us today and let’s work together to manage your debt effectively.