3 Ways Your Accountant Can Help You With Liquidation In Australia

Posted on: 15 August 2022

If you are looking to liquidate your business and sell off assets, then it is important to work with a professional accountant who provides liquidation services. They can help you determine the best ways to go about this process while also ensuring that you are in compliance with government regulations.

Here are three ways your accountant can help you with liquidation in Australia:

1. Your Accountant Can Help You With Liquidation By Determining Whether Liquidation Is The Right Option

Accountants are professionals who have the expertise to assess your financial situation and determine whether liquidation is the right option for you. If you've been struggling with debts and liabilities, your accountant will be able to help you determine whether or not liquidation is a good option. They can also help you determine whether it's better for you to sell off your assets piece by piece or sell them as a whole. For example, if you're selling off a small business, it may be better to sell everything at once rather than selling items one by one.

2. Your Accountant Can Help You With Liquidation By Preparing Reports And Accounts For Creditors

Creditors are people or companies that have lent money to a business, so they are owed money when the business closes down. Your accountant will prepare reports and accounts for creditors, which means providing them with information about how much money they're owed and where it has gone. The creditors may then decide whether or not they want to pursue legal action against you for any outstanding debts; however, it's important that you provide them with all relevant information as soon as possible so that they have time to make these decisions before the date on which your company is officially dissolved by ASIC or ACNC (Australian Securities & Investments Commission and Australian Charities & Not-for-Profits Commission, respectively).

3. Your Accountant Can Help You With Liquidation By Providing Advice On The Tax Implications Of Liquidation

The liquidator may need help from an accountant if there are tax liabilities to be paid during the process of liquidation. This can include Income Tax, Goods and Services Tax (GST) or payroll tax, among others. An accountant will be able to calculate all relevant taxes owed by the company under scrutiny and distribute those amounts accordingly. In addition to this, your accountant can also advise you on any tax benefits you might be eligible for. This could include a lower rate of capital gains tax or a reduced company tax rate on the sale proceeds of your business.

Your accountant can help you with liquidation by providing advice on the tax implications of liquidation as well as your other financial obligations and rights. Chat with a company such as Menzies Advisory for more information on liquidation services today.