Accountants and bookkeepers often have the first opportunities to observe changes in a business, both positive and unfortunately negative. By getting involved with their clients through asking questions and testing their clients’ knowledge of the business and its key performance indicators, they can spot the danger signs that trouble is approaching or at hand.
Typically, it is not just one factor that points to a demise in a business, it is generally a culmination of factors, such as:
The above are all internal factors. But what about external factors?
The CPA Australia website hosts a danger signs cheat sheet to help Accountants and business owners spot the danger signs. One of the most important things is to not ignore or delay addressing any of the above factors. Acting quickly gives your client the opportunity to address and promptly deal with areas of concern and return the business to a stable and less unpredictable position.
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