The ATO has created a Business Viability Assessment Tool that can assist you to self-assess your businessâ€™s viability.Â This tool assists you to evaluate financial performance and position and provides a summary financial report and summary of key business performance indicators.
The tool assesses a businessâ€™s ability to pay debts and meet commitments and is similar to the tool the tax office uses in deciding whether to accept or refuse payment arrangements at the advanced collection stage.
Allow around 40 minutes for the assessment and you will need the following information for year to date and two preceding financial years:
Statement of Financial Performance (Profit & Loss)
- Statement of Financial Position (Balance Sheet)
- Aged creditors listing
- Aged debtors listing
- Monthly debt commitments for loans, leases etc.
Obviously this tool should not take the place of professional advice, but is a decent offering by the ATO to assist small business owners.