If your company is suffering from financial crisis or if you are sensing, your company is heading towards bankruptcy, you certainly need to take some precautionary steps to avoid filing bankruptcy. Some of the important tips are mentioned below in order to help you to avoid the tough situation of bankruptcy.
- The first of all you have to cut short the expenses as soon as you sense the financial crisis. You have to slow down your cash flow and develop a short-term flow analysis. You have to decide what bills you are going to pay and what not. The taxes and overheads are necessary to pay and the payment of the bills you can extend should be extended until the crisis comes under control.
- It is very important to pay your payroll taxes on time as these taxes are never discharged even if your business ends up with bankruptcy. No matter whether you are in a partnership or a corporation business, the IRS or Internal Revenue Service will catch you for the withheld of the taxes of your employee’s paychecks.
- You need to analyze your bank accounts also. If you have taken money in form of loan from a bank and if you have your bank account with the same bank, at any point of time the bank can raid you account in order to pay you pending bills. It is advisable to have couple of business accounts which is a common business practice, keep your money at these banks.
- If you are planning to lend some money from any financial institution or from the person, disclose your entire financial situation to them. You may be accused of fraud later on, if you don’t unveil your financial situation clear and fully to them.
