Spotting the early warning signs of insolvency is paramount for business success, said insolvency expert Richard Albarran at a seminar in Sydney today.
Figures have shown that the number of insolvencies have increased in recent months, with 2,148 companies entering into voluntary administration in 2008, 35 percent of these in NSW alone.
Albarran, Partner at Hall Chadwick Chartered Accountants and Business Advisers said it is important for businesses to spot the early warning signs and act swiftly to save the business.
“Early action and sound professional advice are vital and can save a company from liquidation.”
An expert on Director’s Penalties, Ross Burns, stressed the need for early intervention when a company faces a Director Penalty.
“When a company fails to pay its income tax withholding liability, all directors incur personal liability. They can prevent or extinguish that penalty by getting the company into an arrangement with the Tax Office or go into Voluntary Administration or ultimately liquidation if the problem is terminal. Voluntary Administration is there if they can get out of trouble so it is important to act quickly before problems become terminal,” Mr Burns explained.
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