Recent statistics shown by the Insolvency Service displays the fact that 1,817 registered firms have filed for bankruptcy in May 2022, alone. This was astonishingly, 79% more than that of the number of firms who went bankrupt last year.
The recent pandemic had reduced the frequency of liquidations, owing to the incredible support provided by the Government.
However, recently, the frequency of liquidations are exceedingly high, when compared to the statistics from 2019, company failures are worryingly high compared to pre-pandemic figures for the same month in 2019.
May 2022 witnessed a record of 1,584 CVLs. This was 70% higher than that of May 2021 and 66% more than May 2019.
The sudden rise in the number of bankruptcy cases is partially a result of the government having withdrawn its grants for support. For example, there was a winding-up petition, following the moratorium of eviction.
As inflation was predicted to rise by 11% in the later half of this year, firms are worried on how they will cope up as a result of the increasing living costs. The upcoming recession is not making it easier for firms to operate normally as well.
In the middle of the economic downturn, hiring a professional accountant could make all the difference in saving your business. A modern accountant will help you reduce your expenses, enhance your pricing strategies, understand your financial position and make well-informed business decisions. Not to mention the accountant’s ability in finding tax-saving opportunities and business funding solutions. A professional accountant would go above and beyond in ensuring that your business would surpass the current economic challenges successfully.
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