Accounting Network Newsletter - August 2014
Our Accounting Newsletter starts the new financial year with some tips on how to spot a business that might be in distress, some observations and reminders about the ATO’s debt collection initiatives and director penalty notices, and we provide an overview on how to close a solvent company.
While the latest insolvency statistics show that 2014 continues to record the lowest number of insolvencies for the start of a year since 2008, our clients and contacts continue to report mixed views on how businesses are fairing generally.
We’ve observed for a while now that traditional lenders are looking for business, but are still somewhat cautious, focussing on the fundamentals when assessing new business. This includes strong management and operations, quality information systems and strong operating cash flows. With this in mind, we thought we’d go through the signs and indicators that can help you recognise a business in some kind of distress.