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13 signs your business might be in need of some help.
The media is full of reports of impending business closures and restructures as a result of Covid-19. While many business are still performing well in our region, there are some feeling the pressure.
How can you tell if your business is going to be one of the statistics? Chartered Accountants Australia and New Zealand (CA ANZ) has compiled a list of the early warning signs.
Here are CA ANZ’s top 13 early warning signs businesses could be watching for:
- Loss of a significant customer or supplier
- Forecast targets consistently missed
- Uninsured or unexpected disasters
- Time spent on a financial crisis is more than time spent managing the business
- Missed payments to landlords
- Urgent requests for bank funding
- Increased intervention/pressure/oversight from banks or other financiers
- Accounts payable days stretching over 45 days
- Overdue tax lodgements
- Financials are not up to date or accurate
- Directors taking minimal to no wages
- Management inertia
- Low staff morale.
“When trouble is detected early, a business has time to seek specialist help to understand the cause of the problems and explore options for recovery, including non-formal insolvency options, relevant and targeted stakeholder identification and government support.
“Early action can also reduce the damage as many financial ailments, such as excessive debt, compound rather than go away.”
If your business is experiencing any of the above, please get in touch for discussion and advice.