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James Millar
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Pay everyone on time or early. If you can’t then don’t use their service in the first place. In my view paying a small business late a a tactic to manage your cash flow is indicative of poor cash flow management.

Also worth noting that the technical definition of “insolvent trading” for a company under the Corporations Act is when it trades and is unable to pay debts when they are due. So if accountants are encouraging clients to miss payment due dates they may be complicit in directors exposure for insolvent trading under Section 588G. Who do you think the directors will point the finger at….”your Honour my accountant advised that I should defer paying creditors to manage our cash flow problems and that this was an acceptable tactic”. Great advice.

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