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As the pandemic reached unprecedented heights last year and business’ cash flow slowed to a trickle in many industries, the ATO leniently paused taxation auditing and collection. This offered some relief to small businesses struggling under the financial pressure caused by sudden closures, altered supply chains, and lost clients. However, now that the economy is slowly rebuilding and the JobKeeper program has ended, the ATO is resuming its debt recovery activities.

For many businesses, this comes too soon. Although the ATO is prepared to offer payment plans, the burden of these sudden costs will be shocking and difficult for many companies still reeling from a year full of uncertainties. It’s important to prepare your business with strategies that will not only improve cash flow but also allow you to meet your ATO obligations. Factoring invoices is one such strategy.

What ATO Debt Recovery Means for Your Business

As the ATO looks to recover billions of dollars from their debt book, businesses have already started receiving letters about their tax obligations. The ATO has stressed the importance of taking action, even if you’re in a situation where you’re unable to pay the entire amount.

In these extraordinary circumstances, customised payment plans are available. The ATO is prepared to consider each business on a case-by-case basis, as companies in some industries have done well during this time, while many others are barely hanging on. They’ve promised to be reasonable and understanding, but they need to get back to business, and they’re requiring companies to lodge their tax returns and start meeting their obligations.

The big takeaway: don’t ignore ATO communications, no matter your situation. If you do, you risk facing penalties and additional expenses. Instead, explain your situation and work with the ATO to create a payment plan. From there, develop a strategy that includes factoring invoices to increase business cash flow, so you can manage your ATO obligations and continue to help your business thrive.

How Does Factoring Invoices Work to Improve Business Cash Flow?

By factoring invoices with BCashflow Positive, you get quick access to the money you’ve already earned. Instead of waiting for 30, 60, or even 90 days for your clients to pay their invoices, bridge the gap between those payments and inject cash into your business within a few hours. Use funds from invoice factoring to get on top of your ATO obligations, pay your employees, increase inventory, improve your marketing strategy, and more.

With BCashflow Positive, there are only 3 simple steps to release cash from your unpaid invoices:

1. Invoice your clients as usual, and send us copies of the invoices you want funded.

2. In as quick as 4 hours, BCashflow Positive will credit your account with up to 90% of the invoice value.

3. You’ll receive the remaining 10% (less any accrued fees) when your client pays us.

Factoring invoices allows you to put your hard-earned money to work for your business. It’s a strategy you can use during the pandemic to keep cash flowing through the business, help pay employees, and meet your ATO obligations.

When you partner with BCashflow Positive, you have the advantage of working with a company that has more than 32 years of experience helping Australian companies improve their cash flow.

The Benefits of Factoring Invoices with BCashflow Positive

No two businesses are the same, which is why we offer fast, flexible business cash flow solutions customised to suit your needs. Our goal is to make it easy for you to access the money you’ve earned, through the goods and services you’ve already provided to your customers.

Fast Approval and Funding: A response is provided within 24 to 48 hours of submitting your application. We’ll process your invoices the same day we receive them, and you will receive funding in as quick as 4 hours.

No Hidden Fees: Our fees are simple and transparent. Our funding calculator shows you how much funding you can get and exactly what it’s going to cost.

No Property Security and No Quarterly Audits: We give you the freedom to run your business and help you manage your cash flow.

Enjoy the BCashflow Positive Difference

BCashflow Positive is an independently owned Australian company with offices in Perth, Melbourne, Sydney, and Brisbane, servicing small to medium-sized businesses from all over the country. We have long-lasting relationships with many of our clients because our business cash flow solutions are tailored specifically to their needs. Our commitment to helping our clients at every stage of their business journey has made us one of Australia’s leading factoring companies.

If you’re concerned about meeting your taxation obligations as the ATO resumes its debt recovery activities, contact us. We have been helping Australian businesses get on top of their ATO obligations since 1989. Funds released from factoring your invoices with BCashflow Positive can help your business meet the initial lump sum payment, as well as stay on top of ongoing monthly payments.

Businesses we have worked with generally have an annual sales turnover of $500,000 to $30 million and come from a variety of industries such as recruitment and labour-hire, IT and business services, manufacturing, transport, logistics, and more. Call us on 1300 937 292 to find out how we can help your business get on top of your ATO obligations.

Sources:

https://www.accountantsdaily.com.au/tax-compliance/15526-penalties-will-resume-ato-flips-the-switch-on-debt-recovery

https://www.accountantsdaily.com.au/tax-compliance/15603-ato-promises-not-to-destroy-businesses-as-it-resumes-debt-collection

https://www.accountantsdaily.com.au/tax-compliance/14970-ato-details-covid-19-hit-on-revenue-and-lodgement-targets

https://www.ato.gov.au/general/jobkeeper-payment/