MELBOURNE, AUSTRALIA - Many business owners are surprised to learn that a personal guarantee doesn’t automatically disappear when their company faces financial difficulty, administration, or liquidation. According to Acumen Accounting Group, a trusted Melbourne-based firm offering comprehensive accountancy services for business, understanding the legal and financial consequences of personal guarantees is essential for protecting your assets and future.

What is a personal guarantee? A personal guarantee is a legal commitment made by a company director or business owner to take responsibility for the company's debts if the business cannot pay. While often a standard requirement in commercial finance, supplier credit or lease agreements, it can carry long-term risks.

Even if your company enters administration or liquidation, creditors can still pursue you personally for repayment under that guarantee - even years later.

“We often see business owners sign personal guarantees without fully understanding the implications,” said Melissa Lawson, Acumen Accounting Group. “These documents are enforceable even after insolvency, and directors can remain personally liable unless properly advised beforehand.”

What Do Australian Business Owners Need to Know Before Signing a Personal Guarantee?

✅ Guarantees survive insolvency – Administration or liquidation does not erase a signed guarantee.

✅ Creditors can enforce the debt – Recovery may resume after administration ends.

✅ Subrogation may apply – If you pay a company debt as guarantor, you may later claim repayment rights.

✅ Get professional advice – An accountant for small businesses or a business tax specialist can assess your exposure before you sign.

Why Business Advice Matters?

Acumen Accounting Group help Melbourne businesses understand the financial and tax implications of personal guarantees, business structures, and director liabilities. Our accountants in Melbourne specialise in proactive advisory and compliance strategies designed to reduce risk and optimise business performance.

Our accountancy services for business include:

1. Business structure and entity formation advice
2. Budgeting and financial forecasting
3. Cash flow management and virtual CFO support
4. Business tax preparation and compliance
5. Risk management and internal control consulting
6. Succession and exit planning

Whether you’re searching for “accountants near me”, “accountants near me for small business”, or a “business tax specialist near me”, our team provides expert, personalised support you can trust.

We also assist with business tax preparation in Melbourne, ensuring your company meets all obligations while maximising efficiency and long-term growth.

The Bigger Picture: Insolvency Trends & Guarantee Risk

Australia’s business and personal insolvency figures underline how real the risk is, both for companies and for individuals who have given personal guarantees.

1. According to the Australian Securities & Investments Commission (ASIC), companies entering external administration or liquidation have surged. In one nine-month period to 31 March 2024, 7,742 companies entered external administration - a 36.2 % increase from the prior year. Source: Reuters.com
2. The Australian Financial Security Authority (AFSA) reports that for the June quarter 2025, there were 3,179 new personal insolvencies - up 7.9% from the same quarter in 2024, and importantly, 29.2% of those were business-related (i.e., directors, guarantors, or business owners) rather than purely consumer insolvency. Australian Financial Security Authority+1
3. These statistics show that not only are business collapses rising, but that the personal financial risk for guarantors and directors is rising too, especially when personal guarantees are in place.

Importantly, when a company fails, creditors may turn to guarantors under personal guarantees. Analysts note that directors of SME businesses who signed personal guarantees can be exposed even if the company is under administration or restructuring. oracleis.com.au

Putting these together: a business owner in Melbourne or elsewhere must recognise that insolvency risk is not just the business’s problem; it can directly become a personal liability issue.

Protect Yourself Before You Sign - Talk to Acumen Accounting Group First!

Given the rising insolvency figures and the enforceability of personal guarantees, business owners should take proactive steps:

1. Review all contracts or finance facilities you have signed and check if a personal guarantee is part of it.
2. Seek advice from a business advisor/accountant for small business/business tax specialist near you before committing to new credit or supply terms.
3. If your company is showing signs of distress (cash flow pressure, adverse KPI trends, rising debt) engage a trusted advisory firm to assess your forecast, structure and guarantee exposure.
4. Using the right accounting & taxation for super funds, Australia, or broader business tax preparation services in Melbourne, ensure your business is structured to limit personal exposure.
5. Understand that even when your business enters administration or liquidation, you may still be personally liable under a guarantee, so a “rescue” of the company does not necessarily rescue you personally.

For tailored business or tax advice, contact Acumen Accounting Group Melbourne today.

📞 Book your free 45-minute consultation: https://www.acumenaccountinggroup.com.au/advisory-and-consulting/

BUNDOORA, MELBOURNE - Acumen Accounting Group is proud to announce that its founder, Melissa Lawson, has been named one of Australia’s Top 50 Small Business Leaders for 2025, a national recognition program honouring entrepreneurs who are shaping the future of business through leadership, innovation, and impact.

This year’s awards attracted hundreds of submissions from across the country, featuring sustainability trailblazers, category disrupters, community heroes, and leaders who have overcome immense personal and professional challenges to achieve success.

Melissa’s recognition reflects her dedication to supporting Australian businesses through tailored advisory and consulting services that combine strategic insight with financial discipline. Under her leadership, Acumen Accounting Group has become a trusted name in business advisory, virtual CFO services, budgeting, financial forecasting, and risk management, helping clients achieve long-term growth and stability.

“This recognition isn’t just about me — it’s about our incredible clients and team,” Melissa said. “Every business has potential, and our mission at Acumen Accounting Group is to help owners unlock it through smart financial planning, strategy, and confidence.”

Founded in Melbourne and servicing Bundoora, Malvern, and Thomastown, with expansion underway into Cairns, Acumen Accounting Group offers a full suite of professional services, including:

1. Virtual CFO Services
2. Budgeting & Financial Forecasting
3. Business Strategy & Planning
4. Performance Optimisation & KPI Analysis
5. Risk Management & Internal Controls Consulting
6. Mergers, Acquisitions & Valuation Support
7. Succession & Exit Planning
8. Business Startup & Entity Formation
9. Personal Financial & Retirement Planning

Melissa’s approach has been praised for blending traditional accounting expertise with forward-thinking business advisory, enabling clients to make informed decisions and build lasting wealth.

Her inclusion in the Top 50 Small Business Leaders for 2025 cements her position among Australia’s most influential business professionals, highlighting her contribution to both the financial services sector and the small business community.

Your Local Business Advisors – Accounting & Consulting Experts in location Melbourne and coming to Cairns

• Oct 11, 2025   (published)
• Oct 26, 2025   (last modified)

Your Local Business Advisors – Accounting & Consulting Experts in location Melbourne and coming to Cairns

Partner with Acumen Accounting Group for tailored business advice, budgeting, and financial planning that helps your business perform with confidence.

We combine virtual CFO expertise, strategy, and financial insight to strengthen small business performance across Melbourne and beyond.

In today’s volatile business environment, having strong financial insight, strategic guidance, and risk mitigation is more than a luxury it’s essential. Acumen Accounting Group – Advisory & Consulting offers a comprehensive suite of services to help businesses scale, survive shock, and unlock value. From virtual CFO support and financial forecasting to mergers & acquisitions, succession planning, and internal controls, we act as your trusted advisor.

We focus especially on Melbourne (including Bundoora, Thomastown, Malvern and Armadale), and we are expanding into Cairns - positioning us to serve a broad range of clients seeking high-quality advisory and accounting services.

Why Advisory & Consulting Services Matter

While accounting compliance is foundational, advisory services are what allow businesses to move from reactive to proactive. By combining financial analytics with strategy, you can:

1. Identify growth levers and cost pressure
2. Model multiple future scenarios
3. Mitigate risks before they become crises
4. Execute strategic transactions (e.g. mergers, exits) with confidence
5. Build robust internal systems and controls

Given rising rates, supply chain volatility, and cost pressures, many businesses are struggling. According to CreditorWatch and media sources, business failures are at their highest levels in years. For example:

1. ASIC data shows that between 1 July 2023 and 31 March 2024, 7,742 companies entered external administration - a 36.2 % increase over the prior period. ASIC
2. Business failures across Australia are averaging around 5.04 % (October 2024), the highest rate since the COVID-peak in 2020. aicm.com.au
3. The ABS reports that in 2023-24, about 14.0 % of businesses exited (i.e. closed) the market. Australian Bureau of Statistics

These figures reinforce how critical it is for business owners to have strong financial foresight, scenario planning, and risk management.

Our Services: From Virtual CFO to Exit Planning

Below is a breakdown of what Acumen Accounting Group – Advisory & Consulting offers, and how each service benefits your business.

Virtual CFO Services

Acumen Accounting Group Act as your outsourced CFO, overseeing financial management, reporting, cash flow and capital structure. Businesses access seasoned financial leadership without the financial pressure and costs of hiring a full time Chief Financial Officer.

Budgeting & Financial Forecasting

Acumen Accounting Group prepares rolling budgets, cash flow models and scenario forecasts.You can anticipate funding shortfalls or opportunities working us.

Business Strategy & Planning

It's vital to crafting multi-year strategic plans and growth roadmaps to grow your business and financial growth. Acumen Accounting aligns your operations, marketing, finance and staffing goals.

Performance Optimization & KPI Analysis

We define your business tracking, and strategy to improve KPIs aligned to your. strategy. You will see what really drives value and where improvements lie within your business.

Risk Management & Internal Controls Consulting

Assessing control environment and designing mitigation frameworks is vital for your business, regardless of it's your own a small business, start-up business, group, educational institution or medium or large enterprise. Working with us reduces surprises, fraud, errors and compliance risks.

Mergers, Acquisitions & Valuation Support

Do you need help with valuations, due diligence and deal structuring? Acumen Accounting will support you to pursue acquisitions, divestment or capital raises with confidence

Succession & Exit Planning

Businesses must plan for transfer, sale, or exit strategies. Creating a strong culture and profitable business is essential for a saleable business and smooth succession plan. Our team will maximise your businesses exit value and smooth continuity.

Business Startup & Entity Formation

Businesses should have sound advice on legal structure, tax setup, capital injection when starting a business and entity. We'll ensure you start on a strong foundation.

Personal Financial & Retirement Planning

We love wealth planning, tax strategies and working on retirement models. We want your personal and business finances stay aligned with a strong foundation and financial stability.

We approach each client with deep expertise, tailored models, and a focus on clarity and usability, not just jargon or black-box outputs.

Why Choose Acumen Accounting Group?

1. Deep advisory expertise - Not just number crunchers, but strategic thinkers.
2. Tailored solutions - Every business is unique; we adjust to your scale, industry, and ambitions.
3. Hands-on with leadership - You deal with senior advisors, not juniors.
4. Local + expanding reach - Strong presence in Melbourne (Bundoora, Malvern, Thomastown) and coming to Cairns.
5. Holistic view - We integrate business, personal, tax, and succession planning so nothing is siloed.

Melissa Lawson Named Among Australia’s Top 50 Small Business Leaders for 2025

Melissa Lawson, founder of Acumen Accounting Group, has been named one of Australia’s Top 50 Small Business Leaders for 2025 with Inside Small Business - a prestigious recognition celebrating the country’s most innovative and resilient business owners.

This year’s awards highlighted sustainability trailblazers, category disrupters, community heroes, and leaders who have overcome immense personal and professional challenges to drive meaningful impact within their industries.

We’re thrilled to announce that Melissa’s commitment to empowering businesses through insightful advisory, financial strategy, and community contribution has earned her a place on this distinguished list.

Melissa’s recognition reflects Acumen Accounting Group’s mission to deliver more than numbers - helping clients grow sustainably, make smarter decisions, and achieve lasting success through trusted advisory and consulting services.

Congratulations, Melissa, on this well-deserved achievement and for continuing to set the benchmark for excellence in accounting, business strategy, and leadership across Australia.

Client Use Cases & Outcomes

Juliana Villa Ortiz

2 months ago

Melissa is incredibly knowledgeable and professional. She takes time to explain the process ensuring we adhere to ATO rules - she goes by the book and that's great to know. I have been doing my tax return with ACUMEN /Melissa for very long time now and we haven't had any issues so far. I highly recommend her!

Alice Westera

8 months ago

Melissa has always been so approachable , professional and supportive in the start up of our small business. No task has been too big or too small and she is always there to explain things and put our minds at ease! Starting up a business for the first time would never have been this easy and seamless without the help of Melissa. Thank you for all of your help and support !

How to Get Started

1. Discovery call - We learn about your business, challenges, goals.
2. Diagnostic review - We assess your financials, forecasts, systems.
3. Proposal & roadmap - We lay out a phased plan with deliverables.
4. Ongoing engagement - We deliver and adapt - monthly, quarterly, or project-based.

If you’re in Melbourne (Bundoora, Malvern, Thomastown) or even in Cairns, we’re ready to bring clarity and control to your business journey.

Contact us today at Acumen Accounting Group to explore how advisory and consulting can become your competitive edge.