Overview
Artichoke didn’t know what to do after their business kept going down and they found out they owed the ATO a lot of money due to there being no cashflow to fund ATO payments. Their passion had always been making coffee’s and servicing customers’ savoury needs but they claimed they always needed help with their business side.
About
Client Name: Louis Carillo
Industry: Hospitality
Location: Sydney, NSW
Size: 1- 10 Staff
Artichoke’s Coffee Shop is a medium size business which has been in operation for 18 months doing a couple million dollars in turnover. They had a strong drive for satisfying customers cravings and providing high quality coffee with customer service to the people of the community.
"My passion was seeing customer's with a smile on their face ... now I just want to get out of debt."
How has your project helped the client?
Money Saved
Satisfaction
Services Leveraged
The Challenge
Louis was almost about to sell his house to pay off his debts due to the lack of ability to project reasonable numbers. The business did not identify their cash flow problems early and hence their inability to service their debts leading to no proper business direction. This could be attributed to the lack of up to date information provided to them by their business advisor. The main challenge lied in the face we had to redo all the work and start from scratch.
- Previous accountant was traditional and compliance based
- No cashflow to fund ATO payments
- No proper business direction
- Inability to service debts with no savings
The Approach
We took a very proactive approach as an accountant should redoing all the work and applying certain tax minimisation strategies and negotiate with the ATO to place him on a payment plan to help him keep his private assets and not have to go further in debt. We helped implement cloud based accounting technologies throughout the systems they had to provide them with the best possible chance of coming out the other side to see light.
- ATO Tax Debt Negotiation
- Tax Planning
- Cloud Based Accounting
- Tax Minimisation Strategies
"Negotiating with the ATO has helped us show Louis what it is like to work with a new aged proactive accountant."
The Results
Finding the pearl
After heavy negotiation with the ATO we were able to secure a fair amount of negotiations which favoured Louis. We placed everything on a cloud based system, which provided him 24/7 access to his numbers so he can understand where his business is positioned at any point in time. Through the entire restructuring phase we put a gameplan through to have the debt paid off in the next 18 months.
After identifying growth patterns specific for Louis’ business they are now leveraging our Virtual CFO services to constantly assess whether or not the finances are in check. Through a coaching session we now have put together a 5 year growth plan so that they never fall into the hole they were in before.
- CLoud based systems with 24/7 access
- 5 year growth plans
- Cash flow funding approved via the broking channel
- Savings incorporated to pay furture GST and PAYG
