What should accountants look for within their accountancy client base for the possibility of insolvency clients?
There are various indications that a company is experiencing financial difficulty and could potentially enter insolvency, and an accountant is a crucial figure in spotting these early warning signs.
When action is taken early to avoid insolvency, it provides the opportunity for directors to trade their way out of difficulty, and certainly expands the company’s options for recovery.
So what might an accountant look out for in this respect? When your company is experiencing financial problems, the very worst thing you can do is ignore them and hope they will simply disappear.
Left alone, these problems have a habit of getting worse. Seeking professional guidance as soon as possible should be a priority for any company director.
How does an accountant spot potential signs of client insolvency?
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.