Your lawyer and accountant see the offer differently.

Two sensible opinions point in different directions

A lawyer recommends settling a claim because the evidence is uncertain. The accountant says the proposed payment would leave the company unable to fund the next month. The director feels forced to choose between them, although each adviser is addressing a different part of the same decision.

Identify each adviser’s assumptions

Ask the lawyer to explain the legal risk, likely further costs and consequences of rejecting the offer. Ask the accountant to show payment timing, available cash and the obligations affected.

Check whether both are using the same settlement version and figures. A disagreement may reflect different assumptions about instalments, costs or the date funds leave the bank.

Build one decision schedule

Put the offer, expected professional costs, timing and remaining obligations together. Include uncertainties rather than presenting the most favourable outcome as certain.

Business.gov.au recommends comparing estimated and actual income and costs to identify shortfalls. Use current financial records so the legal decision is connected to the business’s capacity to implement it.

Source: business.gov.au - Guide to managing cash flow

Ask for coordinated alternatives

With appropriate permission, arrange a focused discussion between the advisers. Ask whether a different timing, narrower release or staged performance could address both concerns.

The lawyer should assess legal effect while the accountant evaluates the cash consequences. Neither task is replaced by a verbal assurance that the other issue will work itself out.

Make the director’s decision explicit

Record the chosen option, reasons, remaining uncertainty and immediate actions. If the discussion reveals inability to pay debts as they fall due, seek qualified insolvency advice promptly.

ASIC identifies cash shortages and overdue debts as warning signs requiring attention. A settlement cannot be assessed safely as an isolated transaction if the wider business is already in difficulty.

Source: ASIC - Insolvency for directors

Ask both advisers the same question

Circulate the same proposed terms and current cash schedule. Ask what changes would make the arrangement legally acceptable and financially workable.

Resolve differences in assumptions before signing. Record the implementation owner and review the actual cash impact when the settlement occurs.

Call CRP today about debt recovery and coordinating the appropriate professional support.