The number of company insolvencies are at an 8 Year High exceeding 20,000 in the 12 months to August across England and Wales. (Source: The Insolvency Service)
Sadly I predict, this is just the start. The next 18 months will see many more fatalities as businesses face unprecedented challenges. Including,
- Extraordinary energy prices
- Inflation
- Rising costs due to supply chain issues
- Falling cashflow due to falling customer demand
- Workforce shortages
- Unpaid and overdue taxpayer covid loans remaining outstanding
All resulting in tighter financial conditions creating the perfect storm for many small business owners, as reported in my blog early in August, all of which is hitting business confidence.
‘Time to Act’
Cashflow is now worsening in more businesses than it’s improving. With the well-publicised price pressures we are now at a critical point for many SME business owners, this all points to the need for immediate action to support businesses.
At Risk Dashboard our Compliance+ framework provides an ‘early warning’ of critical risks businesses need to address.
This approach has been created by Risk Dashboard working in harmony with our partners at VFD Pro. Helping advisors support their clients in navigating disruption and create a fast and effective resilient framework for business survival.
Risk Dashboard and VFD Pro can help advisory to leverage financial and non-financial data creating the crucial insights to empower your SME clients to develop and grow.
SME’s need a longer-term strategy in order to instill confidence and give them the encouragement they need to start taking more strategic decisions around their future.
The future, isn’t that what advisory needs to be really focusing on – making businesses successful?
It’s important in these times that we ALL continue to do everything we can to support the success of SME businesses, the backbone to the UK economy.
Why Risk Dashboard?
As a specialist provider of analytical solutions to the accounting / advisory sector, Risk Dashboard delivers real-time evidence based continuous analysis for improved reporting and decision making for accountants, business advisors and their clients.
If you would like to know more about how Risk Dashboard and VFD Pro can help in creating a wider ‘advisory risk’ based solution to avoid client insolvencies please contact Neil Campbell, Commercial Director at Risk Dashboard on info@riskdashboard.co.uk
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