Ben Walker runs Brisbane-based accounting firm Inspire Accountants, which works exclusively with small business owners. Here he shares some tips and lessons learned over the years that may help businesses avoid becoming insolvent.
First of all, to run through what insolvency is at a high level, it means that the business is not able to pay its bills when they are due.
If the director(s) of the business continued trading reasonably, knowing that the business is struggling to pay its bills in full as and when they are due, this can be seen as insolvent trading and comes with heavy penalties, including the possibility of exposing the directors personal assets.
A common observation I make of businesses going into insolvency is that it do…
Read the full article at: https://www.splashmagazine.com.au/five-tips-to-reduce-the-chances-of-going-into-insolvency/