Chartered Accountants & Tax Specialist
General update by IBBZ Accounting on latest tax news, business growth and technology tips.
Is your business struggling financially, operationally or you just do not have enough time to focus on the business.
Have you thought about restructuring your company? Have you heard the term “restructuring”, what is this, is this right for your business?
Restructuring is often misunderstood, and people think this of a negative thing. However, this is a positive thing. It means you are looking at the business from fresh pair of eyes. It is a positive exercise. Businesses operate in everchanging economical and financial world. What you are doing today might not be applicable in 10 years’ time. So of course, if you are still using a decade old methods you need to change. We often see various problems in the business operations. The legal structure is not right. Tax mitigation structures are not being used. The pricing tools are outdated. The bookkeeping methods are old and so on. When things done correctly the restructuring can deliver new methods of realising the full potential. The ultimate aim of any business is to be profitable and pay its creditors on time.
So, whether your business is facing challenges or not. Many companies consider restructuring to ensure they are ahead in their game. This is mainly done to improve performance to be the industry leader. Sometimes this is done to attain operational effectiveness, or to save taxes. Many entrepreneurs also restructure their business when their small business begins to be profitable.
In simple words restructuring is “a process of making company profitable”
IBBZ Accounting has dealt with a number of restructuring situations due to mismanagement issues, financial difficulties, debt owed to Inland Revenue. Please contact our tax specialist team.
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