Asset Protection
If you are running your own business or are a director of a small business, it is important that you safeguard your personal assets. There are many risks in business and the last thing you want to happen is to sacrifice your hard-earned personal assets.
You need to have an asset protection plan in place before anything happens.
One unreasonable client, a lack of documentation or a miscommunication can cost you money.
Poorly managed cash flow is often the catalyst for concern. Business owners are often over optimistic when estimating revenue and underestimate the costs of running a business. Such miscalculations can leave you exposed.
Depending on your business structure, your personal assets could be seized to pay the company’s outstanding debt. This is why setting up your business structure properly is vital to the long-term asset protection of you and your business.
The best way to protecting your assets is to seek the advice of your accountant. Your accountant will highlight the advantages and disadvantages of each business structure and recommend the best structure to suit your needs.
Oftentimes banks, landlords and suppliers will seek collateral or guarantees to do business. Depending on the size and nature of your business, you may find yourself committing the family home as security. If this is the case are your personal assets truly protected? There are a number of ways to mitigate this, so give us a call to discuss your options.
There is no one size fits all strategy that you can use with confidence and it is important that you take all aspects into account before making a decision.
Seeking professional advice is vital so don’t delay. Make time this week to put your asset protection into place. Speak with Springwood Accountant, Nathan Watkins at Unlimited Accounting and Business solutions today.