Awkward!
Its probably more awkward if you have to tell suppliers and employees you don’t have the money to pay them.
If you can’t pay your bills, you may be insolvent and that can lead to harsh penalties for the directors. (penalties up to $200,000)
ASIC says: A company is insolvent when it cannot pay its debts when they are due. There are serious penalties for allowing your company to trade while insolvent. If you suspect your company is in financial difficulty, get professional accounting and/or legal advice as early as possible. This increases the likelihood the company will survive. Do not take a ‘head in the sand’ attitude, hoping that things will improve – they rarely do.
Perhaps its time for us to have a talk about your money, maybe even setup some cashflow forecasting so you know what you are up for – before the phone calls start.
We love to chat (it doesn’t have to just be about money), give us a call
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