Background
The business operated a large disability services company, relying heavily on revenue from the NDIS. As a result of substandard accounting and bookkeeping advice, the business experienced immediate cash-flow pressure due to an unexpected taxation liability exceeding $1 million, raising concerns about its financial viability.
On the recommendation of another taxation accountant professional, the company engaged Simon for an Investigating Accountant engagement to review its financial position and assess potential restructuring options. The engagement identified that the company was insolvent, or at risk of imminent insolvency, and supported the company in entering voluntary administration and a Deed of Company Arrangement to preserve value and restructure the business. After successfully restructuring, the company continues to trade under the DOCA, preserving jobs and services to the community.
How did we assist?
- Appointed as Investigating Accountant to assess the financial position and viability.
- Conducted detailed financial review following unexpected taxation liabilities exceeding $1 million.
- Identified insolvency risk and guided the business on appropriate restructuring pathways.
- Recommended voluntary administration to protect value and restructure operations.
- Supported transition through to voluntary administration and subsequent DOCA.
OutcomeThe Investigating Accountant review confirmed that the business was insolvent or at risk of imminent insolvency. On our recommendation, the company successfully entered voluntary administration and a Deed of Company Arrangement, allowing the business to continue trading, preserving employment, and ensuring continuity of critical disability services to the community.
