The number of registered company bankruptcies in June 2022 was 1,691. This is 40% higher than that of last year!
The latest impecuniousness digits display a large spike in companies going into bankruptcy and liquidation, although the number is lesser than that of May 2022, where 1,822 declared bankruptcy.
These can be seen as a result of the government withdrawing the measures it had provided during pandemic times to support businesses.
Strikingly, the construction sector seems to be deeply affected. There have been 3,611 insolvencies in the past year, which is 112% more than that last year. Serious inflation in raw materials and machinery can be seen as a factor.While rising costs are a concern, business owners are advised to avoid giving up and continue striving in order to reduce insolvencies in the coming months.
In challenging times like these, business owners need to make the right decisions for their business. They need to stop and reassess how they operate from time to time.
Business owners need to have closer ties with their accountants! That’s the best thing you could do for your business as we slowly move through inflation, and are headed towards a recession.
Despite the economic downturn, taking the time to automate and optimise your financial processes will build the required solid foundation that your business needs to not only survive, but also thrive.
Hiring the right accountant by your side is key! At Elena Meskhi& Co., we take pride in what we can do for our clients. We are here through the good times and challenging times. We will help you build a solid financial foundation from the ground up. This foundation will become a forte for your business, a protection against the internal and external business challenges.
Contact us, and let the economic downturn be a start to a great chapter in your business.
Expect nothing less than Smart Solutions for Successful People.
