The current economic outlook is to say the least, uncertain. Economic questions cloud the future. Interest rates, inflation, and the ongoing implications of Brexit have an impact. As does the consequences of global warming and the conflict in Europe and further afield. Forthcoming elections both here and abroad also make it harder to understand a business’ viability trading forward.
The Macroeconomic Environment Impacts Businesses
There will always be insolvencies. This does not have to be a reflection of the directors and individuals involved. Businesses fail for many reasons. Often this is not a result of decisions taken by directors or stakeholders. These issues are frequently outside of day to day trading decisions. And more likely to be a result of the macroeconomic environment.
Making the decision to cease to trade or perhaps liquidate a company, will be a difficult one. BUT in the right circumstances, a positive decision. A decision that should not be viewed as a stigma. In fact, such a decision could help protect a director from exposure.
What might seem to be a multitude of issues can be resolved through liquidation, thereby providing the opportunity to rationalize or recommence trading with a new business that is better equipped into the future.
Many directors naturally worry about employees, unpaid bounce back loans, overdrawn directors loan accounts and personal guarantees that might have been given. These however need not be problems and in the first instance, before taking any decisions, these can be talked through to examine the issues to facilitate a strategy which may result in the rescue of the company. Or at the very least provide directors with the information to move forward armed with the knowledge to protect their future and take the right decisions.
Understanding when to get advice from an Insolvency Practitioner
When creditors start piling on the pressure, it’s crucial to seek advice ASAP to spot and tackle any issues head-on.
Local insolvency practitioner Hayley Maddison, Director of Maidment Judd says
Advice is free, confidential and of no obligation to take immediate action. Seeking professional advice should not be viewed as admitting defeat but as a sensible, proactive and responsible action for any company director to take.
Don’t put off getting advice from a licensed insolvency practitioner. Seeking advice sooner, opens up more options and can protect directors’ personal positions. Because by understanding what you can and can’t do, ensures you make the right decisions.
Do get in touch if you would like to discuss your accounting or tax needs – you can call us on 01992 444466 or email directors@hbaccountants.co.uk
The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors
Read our Latest Posts Below
- Company Directors and Partnerships – you need to be aware of these Companies House Changes
The registration system used by Companies House is changing in 2025 due to the Economic Crime and Corporate Transparency Act. The changes are designed to prevent fraud and ensure that businesses are more transparent. If you are a director of a UK company, a person with significant control (PSC) or a member of a LLP, … Continue reading - 3 reasons why a local accountant is better for your business
You may not know that local accountants HB Accountants, based in Hoddesdon in Hertfordshire and on the Essex border, was originally a London accountancy practice. We moved out to this lovely market town over 40 years ago and are so happy that some of our original London-based businesses are still our clients. - Fundraising for a defibrillator at Plumpton Road in Rye House Hoddesdon
A defibrillator recently saved the life of a family member. This is why we are fundraising for a defibrillator outside our offices at Rye House. Will you help? - Simple spreadsheet accounting or accounting software package: which is best for your small business?
A critical part of running a small business is managing your accounting. Not only do you need to manage the bookkeeping – the recording and organising of your financial data such as invoicing, expenses, payments and payroll – you also need to manage your accounts – the presentation and interpretation of that financial data including … Continue reading - HB Accountants Awarded Net Zero Silver Accreditation
With a renewed focus on reducing carbon emissions and greenhouse gases to help mitigate some of the damage we are doing to our planet, the Government has committed to a legally binding target of net zero emissions by 2050.
