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“You cannot run a business in these volatile conditions without keeping a close eye on all the potential risks that customers pose.” According to the latest figures from ASIC, there were 1,318 insolvency appointments in May 2012 – up 9% on May 2011 and closely following the April 2012 figures which in case you didn’t know, were the worst ever on record.
If you are a director when your company is found to be trading while insolvent, then you face penalties of up to $220,000 and/or 5 years’ imprisonment! And that’s even if you didn’t know about it, because Australian law says that as a director, you should have known. Crikey! Fair suck of the sauce bottle! (And insert other intentionally overt Aussie slang tirade here.)
As I recently noted, troubled businesses that wait too long to seek financial help end up hurting the Australian economy – to the tune of $13 billion every year. Fortunately, turnaround specialists are committed to insolvency prevention by returning troubled companies to profitability and financial stability. Here's how to make sure you're alert to the warning signs and know when to call for help.
Five fingers and a raised hand could be all that’s required to add an extra $2 billion to the Australian economy each year. That’s the money that would be saved if even only half of Australian businesses that find themselves in financial strife put their hands up for help earlier.
Cashflow problems often arise due to lack of understanding of how cash moves through a business and the difference between profit and cash flow. Here are some great tips to help ensure that your cash is flowing in the right direction.