20 per cent VAT 2012 budget 50% return accountancy accountancy fees accountancy services accountant accountant B accountants accounting for dividends accounting software accounts administration annuity annuity rates Autumn statement avoid inheritance tax avoiding inheritance tax bank lending basic personal allowance BCC big picture Bribery Act British Chamber of Commerce budget budget 2011 Budget 2012 budgeting business business advice business confidence business exit business exit planning business friendly business goals business management business owners business plan business planning business record keeping business records business sale business success business succession planning business survival business tax planning business tips bwe based account cash flow Cash flow forecast cash is king cash management Cash-based accounting cashflow chancellor chartered accountant chartered accountant Birmingham chartered accountants chartered financial planner chartered financial planner Birmin child savings children’s savings client entertaining Cloud accounting Company Tax returns corporartion tax Corporation tax credit control credit control procedure debt collection debt recovery director’s loan account directors loan Directors’ loan account dividends doubl dragons den Economic expansion EIS Enterprise Investment Scheme enterprise zones Entrepreneur’s relief entrepreneurs entrepreneurs relief exit planning finance finance management financial advisor financial difficulty financial forecasts financial goals financial management financial plan financial planning financial planning checklist financial planning tips FSTE 100 FTSE100 fund manager gifts global markets growth HMRC HMRC enquiry HMRC tax enquiries HMRC tax enquiry home loans how to manage time ICAEW IHT income tax income tax r income tax return inheritance tax inheritance tax planning insolvency Institute of Chartered Accountants investing Investment investment advice investment diversity investment in marketing investment management investment philosophy investment planning investment portfolio investment strategies investment volatility investments investors jobs key perfirmance indicators KPIs kpi's late payment penalties late payment penalty fines late payments management meetings marketing investment miscalculated tax motivating staff national lottery new years resolution online accountancy software online accounting online accounting software online accounts online tax return online VAT return outsourced accountancy outsourcing outsourcing accounts overtrading owner managers Pay off mortgage PAYE paying a dividend pension pension contribution pension contributions pension fund Pension funds pension scheme pensions personal allowance trap Personal financial plan personal financial planning personal tax return plumbers tax safe plan pre pack administration private pension profitable business sale R & D tax credits R&D tax credits recession reduce tax report on economy research and development tax credits retirement planning Saga sareholder protection cover Seed Enterprise Investment Scheme SEIS Self assessment self assessment tax return selling my business selling your company shareholder protection small business small business tax small businesses SME SME marketing SME tax planning SMEs start-up succession planning tax accountant tax affairs tax avoidance tax breaks tax charges tax code tax disclosure tax enquiries tax enquiry tax evasion tax investigation tax investigations tax liability tax man tax mitigation strategies Tax planning tax planning advice tax planning schemes tax reduction tax reform tax relief Tax return tax saving tax saving strategies tax savings tax strategies Tax tribunals taxation tax-break time management time management skills tough times UK Bribery Act UK economy VAT increase vat return VAT rise VAT submission web based acc when to pay a dividend work-life balance Xero Xero accountancy software Xero accountants xero accounting Xero accounts Xero accounts service

More SME insolvencies to come?

Add to: Digg Add to: Del.icio.us Add to: Facebook Add to: Furl Add to: Google Add to: Live Spaces Add to: MySpace Add to: StumbleUpon Add to: Twitter
Friday September 24, 2010 at 12:05pm
A recent survey from asset-based lender Venture Finance and Accountancy magazine found that 60% of accountants believe that a further increase in SME insolvencies is still to come.

The economy is only showing tentative growth, and lots of smaller businesses are still struggling to keep their head above water. Most small businesses are currently focused on stabilising performance rather than growth and if they’ve built up debt in the depth of recession they may struggle to find a way out.

The survey found that 27% of UK SMEs are shrinking and some even dying due to a lack of working capital. A quarter have been labelled as ‘exceeding their working capital’ with 18% at risk of overtrading.

But companies in financial difficulty can have a much better chance of surviving than you might think. Acting quickly and taking expert advice will help.

A firm might be able to trade out of the problem, which is where available finance becomes so important.

Unless the banks start lending there are likely to be more difficulties ahead for small businesses. Whilst invoice and asset-based lending are available the banks need to be more forthcoming and more prepared to support SMEs, the lifeblood of our economy.

Andy Parker
Chartered Accountant

Comments on this post:

There aren't any comments for this post yet. Why not be the first to comment?

Categories:

Accountancy Services, General, Support for Business Owners

Other Recent Posts
  • What does retirement mean to you?
    		•
  • Double Dip Recession. Is it all bad news?
    		•
  • Large corporations must do more to stamp out late payments
    		•

    Share your experiences:

    Your Name  
    (to appear with your comment)
    Email Address  
    (will not be published)
    Comments:  
    Human Validation Check  
    In the box below, please type the characters that you see in the picture. This helps us to ensure a real person (and not a crafty computer!) is submitting this form.

    Enter the code shown to the left:

    Parker Chartered Accountants and Financial Advisors, 1192 Warwick Road, Acocks Green, Birmingham. B27 6BT.
    Tel: 0121 764 5161  Fax: 0121 764 7833  Email Parker Chartered Accountants here