How do I know if my small business is financially viable?
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How do I know if my small business is financially viable?
Try using the ATO's free online business viability assessment tool
This article is intended as a preliminary guide only and refers to some but not all elements required to consider in detail prior to starting any property dealings or due diligence. Property dealings are often complex, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
If you are running a small business, you’ll know that your business’s ability to survive is linked to its financial performance and position. The viability, or financial health of your business, is vital to your professional success.
Your business needs to either return a profit after meeting its commitments to business creditors, or have sufficient cash to sustain itself through a period of non-profitability.
If you are unsure about the financial health of your business, the Australian Tax Office (ATO) has a business viability assessment tool which you can use to determine the viability of your business.
You’ll need access to your financial figures for a minimum of three months to receive an overview of your business viability in a printable report. The report covers key financial ratios and provides you with an assessment of the financial position and performance of your business.
The ATO will not keep a record of your personal information on its systems, and only retains your financial information for the purpose of completing the assessment.
What next? The review provided by this tool is for information purposes only. If you have any concerns about your business viability, you should seek professional advice from an accountant, solicitor or insolvency practitioner.
Find the ATO’s Business Viability Tool here.
This article and the above linked articles are not complete and are intended as preliminary guides only. These guides refer to some elements to consider prior to starting any property dealings or due diligence. Property dealings are often complex areas, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
