- CASE STUDY – CASH FLOW & BUSINESS FINANCE
From a Tough Year to a $7.4M Turnaround
Acctivate Business Accountants helped an established, asset-heavy business regain control after a difficult year and put the right foundations in place for the future, clearing ATO debt, protecting millions in equipment and returning the business strongly to profitability.
- Acctivate Business Accountants
- Sep 2026
- Brisbane
- Client Snapshot
When this client came to Acctivate, they had already built a successful business over eight years. But 2025 had been tough. Weather delays impacted projects, a major customer stopped paying them, and significant ATO debt had accumulated. At the same time, they weren’t getting the support or advice they needed from their previous accountant. The underlying business was good. They just needed help getting things back under control.
- THE CHALLENGE
A good business was having a bad year, and the numbers showed it.
Revenue sat at approximately $3.6 million in FY2024 and $3.9 million in FY2025, but the challenges of 2025 pushed the business into an operating loss. Weather delays, an unpaid major customer and a growing ATO debt were putting real pressure on cash flow, and the owners weren’t getting the guidance they needed to steer their way out of it.
The business itself was sound. What it needed was someone to get the tax debt under control, restore visibility over the numbers, and put the right structure and plan in place for what came next.
- The Acctivate Approach
Got the ATO debt under control
We helped negotiate an affordable ATO payment plan, giving the owners a clear path to reduce their tax debt without putting unnecessary pressure on business cash flow.
Introduced quarterly advisory meetings
Rather than only speaking at tax time, we now meet with the owners every quarter to review performance, cash flow and upcoming decisions. We also cleaned up the balance sheet and provided practical bookkeeping and Xero training, so the owners have much better visibility over their numbers throughout the year.
Identified missed fuel tax credits
By understanding how the business actually operates, we identified an opportunity that had previously been missed. We registered the business for fuel tax credits, with almost $39,000 in credits recognised in FY2026 alone.
Protected millions in business assets
This is an asset-heavy business, with millions of dollars invested in equipment, but historically those assets had been held inside the trading entity. We established a separate asset-holding structure, with new equipment now purchased outside the trading entity to improve asset protection as the business continues to grow.
Helped with the owners’ personal goals
When the owners wanted to purchase a new family home, we introduced them to a finance broker and worked directly with the broker to provide the financial information and context needed to support the application. They successfully purchased their new home.
- THE RESULTS
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Revenue climbed to approximately $7.45 million in FY2026, a 90% increase in just 12 months
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Gross profit grew to more than $2.3 million, with the business returning strongly to profitability
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A clear, affordable ATO payment plan in place, easing the pressure on cash flow
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A separate asset-holding structure protecting millions of dollars in equipment
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Almost $39,000 in previously missed fuel tax credits recognised in FY2026
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Quarterly advisory meetings and Xero training giving the owners year-round visibility
Within 12 months, the business went from one of its most difficult years to approximately $7.45 million in revenue and strong profitability. But the turnaround isn’t just about the numbers. The ATO debt now has a plan, the owners understand their numbers better, their structure protects future equipment purchases, they’re claiming credits they’d previously been missing, and they now have an accountant sitting down with them every quarter to help plan what’s next. Sometimes a good business just has a bad year, and the right advice can help make sure one bad year doesn’t define what happens next.
"After 8 years in business and several accounting firms later, Elle was recommended to us and we have not been disappointed. By far the most exceptional, thorough service we have experienced. Someone who understands our business and can explain things in terms we can understand. Would highly recommend Elle."
Acctivate Client
Established Asset-Heavy Business
- THE ACCOUNTASNT
Elle Green, CA
This case study is for general information purposes only and does not constitute financial, tax, or legal advice. Client details have been kept confidential. Outcomes depend on individual circumstances. Please seek professional advice before acting on any information contained in this document.
- FREQUENTLY ASKED QUESTIONS
Can an accountant help if my business has significant ATO debt?
Yes. ATO debt can feel overwhelming, but it’s usually manageable with the right plan. A good accountant can negotiate an affordable payment plan with the ATO that gives you a clear path to reduce the debt without crippling your cash flow. The key is dealing with it proactively rather than letting it accumulate. The ATO is generally more willing to work with businesses that engage early and come with a realistic proposal, which is far easier to put together when your numbers are up to date.
What is an ATO payment plan and how does it work?
An ATO payment plan lets you pay off a tax debt in instalments over time rather than all at once. The aim is to agree an amount that’s realistic for your cash flow while steadily reducing what you owe. Getting the balance right matters: too aggressive and it strains the business, too slow and interest keeps building. An accountant who understands your actual numbers can propose a plan that clears the debt on a timeline the business can genuinely sustain.
Should my business assets be held inside my trading entity?
Often not, especially in asset-heavy businesses. Holding valuable equipment inside the same entity that trades exposes those assets to the risks of the business. A common approach is to set up a separate asset-holding structure, so new equipment is purchased and held outside the trading entity. This improves asset protection as the business grows and becomes more valuable. It’s worth reviewing early, because restructuring later can be more complex and costly.
What are fuel tax credits and can my business claim them?
Fuel tax credits let eligible businesses claim back some of the tax included in the price of fuel used for business activities, such as running machinery, equipment or heavy vehicles. Many businesses that qualify never register and quietly miss out year after year. An accountant who takes the time to understand how your business actually operates can identify whether you’re eligible and register you, which can be worth tens of thousands of dollars a year.
How often should I meet with my accountant?
More often than once a year at tax time. Quarterly advisory meetings let you review performance, cash flow and upcoming decisions while you can still act on them. Meeting regularly means problems get caught early, opportunities get spotted, and you always have a clear view of where the business stands. It shifts your accountant from someone who reports on the past into someone who helps you plan what’s next.
Can a good business recover from a bad year?
Often, yes. A single difficult year, caused by things like weather delays, a delayed payment or a major customer issue, doesn’t mean the underlying business is broken. With the right advice, many businesses recover strongly. The path usually involves getting any tax debt under control, restoring visibility over the numbers, fixing structural issues, and putting a plan in place for what’s next. Sometimes a good business just has a bad year, and the right support can make sure it doesn’t define what comes after.
