Economic downturn, looming insolvency?
Spotting signs of distress in your business
Business insolvency may result from the inability of a business to pay off its debt as they become due or that a business doesn’t have sufficient assets to cover its debts.
The process in which a business becomes insolvent takes time, so it is possible to spot the warning signs if you look at your business objectively.
Here are our five top operational tips to avoid going under:
- Establish and follow a business plan that includes forecasts
- Ensure adequate capital reserves are available by having either cash reserves or access to borrowings
- Impose strict credit control and debt collection procedures
- Ensure that your accounting system is providing you with real time information
- Regularly review underused assets and eliminate unnecessary costs
Call RSM today for a free confidential discussion on how they can help you and your business.
Level 1, 12 Bayly St Geraldton
Trevor Lake – Director-Business Advisory
08 9920 7400