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Bookwise & Co

Avoid being close to bankruptcy


 

 

·       Act in good time - Take action immediately when you notice that the incoming liquids / cash is starting to run out. There are opportunities to solve the problems and avoid bankruptcy. Seek and bring in specialized advice, it increases the chances to save the business.

If bankruptcy is inevitable, the outcome is usually better if it can be prepared for.

·       Regular checks - Check your liquidity and its forecasts.  Keep track of the equity and how it develops. Ask you accounting consultant to give you overview of the results regularly. Create a “balance control check” and bring it to your companions attention in board meeting.

·       Pay taxes and fees on time – keep yourself updated on your company’s tax account and discuss this with the accountant. In case of tax debts, consider if tax referral is possible. Is your preliminary tax unrealistically high for the current year?

·       Pay attention to customers invoices – take action if you notice your client does not pay your invoices. Communicate with them, consider payment plan or take inkasso services as help. 

·       Be careful in the selection of advisers - it is important that re-constructors, bankruptcy trustees and accounting consultants have the right skills to help you. It can both save time and money.

·       Consult with your accountant - by having regular talks or meetings with the accountant increases your chances to avoid unpleasant surprises.



 

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