Credit reporting company, CreditorWatch, has released its report on business activity through January. The latest results indicate that the Australian economy is likely to recover at a slower pace than desired, with a follow-on effect of more insolvencies. Here’s what to look out for and the proactive steps to take if your business is feeling financially stressed…

Banks and the ATO have resumed their usual collection activity, driving a steep jump in court actions by 58 per cent over the last quarter compared to the corresponding period last year. It is this figure that tells us that insolvencies will increase in 2022.

The pandemic, specifically lockdowns, has meant that Victoria and NSW are struggling more than other states.

Small business owners have been hoping for a break for years, and they’re facing even more uncertainty. So, what can they do about it?

The top tip is…don’t wait! The minute you feel strain, rein in your financial support team and get cracking. All any business owner has, is their next decision, so make it a good one.

Around the table with your accountant, look at your sales data, forecast the year ahead, know what your financial options are. Invest in software that will increase your visibility of every financial decision. It will pay you later.

The business environment has forced the hand of many business owners, and that can be a very humbling experience, but the moment you get the right insight and advice could be a matter of business survival. We recommend a business health check with a qualified accountant and business coach. We’re not going to lie, it’ll take you a good hour to complete the AdviceCo Business Health Check, but it could be the best hour of your career so far. It’s a document that you can complete in your own time, at not cost, and our experienced team will pour over the details and meet with you to outline any leaks that need plugging and opportunities that can be pursued.

To find out more, join our Business Planning Workshop in Gosford on the evening of Wednesday 2 March, or email our team for a copy of the AdviceCo Business Health Check: mail@adviceco.com.au