The year 2022 is nearly over, yet a worrying pattern is being noticed as a rising number of company insolvencies are being reported. 16% since September, to be precise. The number of companies that declared insolvency since September 2022 is close to 2,000! The same pattern extended to October 2022 with around 1,600 companies declaring insolvency in the UK. Even compulsory liquidations were 4 times the number of compulsory liquidations the same time last year.
There are several reasons attributed to this worrying trend in the private business sector in the UK. Obviously, the economy in the UK has been facing tremendous challenges and coupled with the lack of post-Covid governmental funding, it makes sense why businesses are struggling to stay afloat. One more challenge for business owners during this economic downturn is the inflation that was met with customers cutting down their spending habits.
Your accountant should be able to provide you with timely and accurate reports of how your business is doing at the moment and help you develop a strategy to protect your business from the current economic challenges. Your accountant should be responsive and reachable at this time. Your decisions need to be made based on data and information. Every decision, or lack of making decisions matters at this point in time. We know it’s a scary time, but you are not alone. At Elena Meskhi& Co., you have a professional and experienced team that can help you continue to run your business by making informed decisions.
Book a discovery call today to learn more about our services.
