Financial failures could push 1 in 4 SMEs towards corporate insolvency

Published on September 5, 2014 by Crawfords Accounting

Corporate insolvency is an ever-present threat to all businesses, but particularly to fledgling firms that may not yet have developed their cash flow to a particularly robust extent.

With less fallback finance in the bank and a smaller ongoing client base, any new start-up is exposed to unexpected financial shocks to a greater degree.

But it seems a quarter of SMEs might be particularly under threat, due to their owners’ inability to manage everyday accounting tasks effectively.

A study from First Data Merchant Solutions, a supplier of card terminals and payment processing services, shows that 25% of decision-makers in SMEs have found accountancy and tracking finances to be more difficult than they anticipated.

Nearly half (44%) have missed a celebration or occasion of some kind because of the extra time they put into their business – and one in ten have even cancelled their own birthday.

But it is the threat of corporate insolvency that should be the biggest worry for business leaders, as it represents the collapse of all that time and effort.

As such, those on the cusp of business insolvency should seek administration advice as soon as possible – it might be the difference between losing the invested time and money, or achieving corporate recovery and carrying on trading.

We have received an excellent service from the team at RPG for well over 20 years. We particularly appreciate RPG's real interest in our company and suggestions for improvements. The service RPG provides goes well beyond what we could expect.  The attention to detail and the prompt, professional service the team provides means that we are reassured that should we require urgent or unusual advice, the team will provide it. We would have no hesitation in recommending RPG.

Margaret Peasegood

Executive Chairman - SheffProp

I would like to thank RPG for your unbelievable help, assistance and friendship for over 40 years. Nothing has ever been too much trouble. Words alone are insufficient, and I think that the same would apply to my former colleagues and my family who have also come to rely on your advice and guidance.

Neville Johnson

Founder - Neville Johnson Offices

We have worked with RPG for many years, for good reason. They are not only extremely knowledge but they really take the time to get to know you as customers and also as people. This really makes a difference, as whilst it is of course important that you receive great service, which we do, it’s also essential to work with professionals who you can really trust and who go out of their way to know your business as well as you do, giving ultimate comfort that you are all striving towards the same goals. I cannot recommend them highly enough.

Jennie Johnson MBE

Kids Allowed

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Gareth Rowe

Chief Financial Officer - ProofID

“As a family business we have been using Royce Peeling Green as our accountants for over 25 years. We have always been impressed with their expertise and depth of knowledge in all financial areas required to help run our business. There is an obvious understanding and trust between the two companies which leads to proactive approach to guide us with short and long-term financial planning. We have found everyone at Royce Peeling Green to be very approachable providing us with the reassurance that they will always provide a professional response in a timely manner.”

David Harrabin

Managing Director - Manchester Slate Ltd

RPG have now acted for our various companies for over 15 years. Their advice and commercial attitude in dealing with Tax, Audit and general businesses matters has always been of high quality and queries dealt with promptly. The team at RPG are experts in their field, they understand the SME market place well. They have been involved in all our corporate transactions, from setting up of businesses, ongoing support of our management teams through to being part of the team that negotiated the successful sale of a group company.

Jonathan Hamburger

Genesis Group International

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Stephen Rector

Managing Director – Ribble Packaging Limited