Talking Cents

Our small business accountants in Sydney explain what insolvency is

Is your small business going through a tough time with regarding its accounts? Are you afraid of your business heading towards insolvency? Well our small business accountants in Sydney will explain what insolvency and how it affects a business.

So what is insolvency? It is when an organisation or individual can no longer meet or surpass its financial obligations and still owes a substantial amount of money to their lenders or debtors.

What are some of the causes of insolvency?

• Poor cash management
• A reduction in cash inflow
• Increase in expenses
• Lawsuits
• If your business does not adapt with the times

One of the ways that our business accountant in Sydney has seen it affect small businesses is; that slowly over time there will be less of an income and more of a debt ultimately causing the business to slowly become obsolete. That is why it is important for you to stay on top of your accounts or you can simply hire one of our business accountants in Zetland.

As always, feel free to contact our small business accountants in Sydney with any enquiries that you may have.