Wrongful Trading can creep up when no one is watching

The one constant in business, and in life, is change. You must be in control of your personal circumstances to ensure you can carry the changes and the things that change brings with it.

What I’d like to focus on this morning is ‘wrongful trading’, which is a very strong term. But wrongful trading can come about innocently by just not being in control of your own financial and accounting information. So, what’s required? What is required is that you need a firm like ad+ Chartered Accountants to ensure that your systems provide accurate real-time information that you need, to ensure that your business is solvent, and to ensure that it will remain solvent through the management of your business’s activities and your business’s cash-flow.

We have seen so many circumstances recently where businesses, it would appear, one day are solvent and thriving, and the next day are in Administration, or worse in Liquidation. You may have read the recent press articles about failures within a range of sectors, including construction, real estate, care homes, road haulage, bars, cafes, and business support services. Unfortunately, these failures are happening locally around Glasgow and Lanarkshire, as well as throughout the UK. Those businesses could be your suppliers or your customers. Business failures cause ripples which disrupt cash-flow, profit margins, supply chains, and demand. That can be avoided, or at least minimized, if you take the right measures within your business.

We have had two hikes in interest rates in the recent past – that has an impact. You must be in control of your financial information. Not only what ‘The Numbers’ say, but what do those numbers mean. You must take time to think how you should alter your business tactics to best manage the situation. Ideally, you should be reviewing your numbers with a numerate outsider who can provide an objective perspective and who is willing to challenge your own thinking. So, who are you sitting talking to on a week by week, month by month, quarter by quarter, basis to ensure that you are safe, and your business has every opportunity of growing and thriving?

ad+ Chartered Accountants has many years of experience of providing a financial coaching to business owners throughout Scotland. This coaching can be incorporated within a package of bookkeeping, accounting, tax, and payroll services, or it can used as stand-alone business advice to help the you, the CEO, maximise the results of your business. You select whatever arrangement best suits your needs currently, and then change the package as your needs change.

Get in touch with David Charles to arrange your initial discussion with one of our Chartered Accountants to learn how we could help you.