If you are facing liquidation, you are not alone. Many businesses have to close their doors every year due to financial difficulties. However, there is help available. A qualified accountant can give you the advice and support you need to get through this difficult time. Below are three ways an accountant can help you during liquidation.
1. An accountant can help you understand your options
If you're considering liquidation, it's important to seek professional advice to understand all of your options. An accountant can help you assess your financial situation and provide guidance on the best way forward. The accountant can also advise you on the potential financial implications of liquidation and help you to minimise any potential liabilities. With their expert knowledge and support, you can be confident that you are making the right decision for your business.
2. An accountant can help you negotiate with creditors
If you are unable to repay your debts, your creditors may be willing to negotiate a payment plan with you. An accountant can help you prepare for meetings with creditors. Your accountant can help you compile the information that you will need to present at the meeting so that you can make the best possible case for why they should accept a repayment plan. An accountant can negotiate with your creditors on your behalf and help you to get the best possible outcome for your business. They will also offer advice on which assets are worth selling and how to maximise the value of your assets. With their expertise and guidance, you can be sure that you are making the best decision for your business in a difficult time.
3. An accountant can help you understand the tax implications of liquidation
Liquidating your assets may have significant tax implications. An accountant can help you understand the tax implications of liquidation and devise a plan to minimise your tax liability. For example, if you are considering selling your business, an accountant can advise you on the best way to structure the sale to minimise taxation. Similarly, suppose you are distributing the assets to shareholders. In that case, you need to be aware of the dividend tax implications, and they can also assist with the preparation of the necessary paperwork.
An accountant will be happy to offer you an initial consultation to see how they can help you. For more information, contact a company like Menzies Advisory.