Just a quick note to say a big thank you to all the staff at KSA, our CVA was passed today by creditors voting in an overwhelming number including HMRC to accept the proposal as prepared by KSA.
The road to reach today’s conclusion has been bumpy, but at each stage your team has supported and guided us through the issues and we have reached a very satisfactory outcome to the benefit of customers, staff, all creditors and shareholders.
As an accountant you are best placed to understand the financial situation regarding a company IF you have complete, up to date, and accurate information from the accounting system in place. As I am sure you know this is not always the case as data is not always input in a timely manner. What is more, any accounting system can really only show you a snapshot in time.
Then the directors suddenly approach you and say “we are in trouble and can’t pay the bills, what do you suggest?” Obviously the first thing is to make sure they can pay your bill!
If a company is insolvent ( see the 3 tests ) i.e. it can’t pay its bills when they fall due then the directors have a duty to their creditors and must act accordingly. The best thing to do is for them to take advice!
If you already know an Insolvency Practitioner then by all means refer to them but please consider asking for a second opinion. We are specialists in rescuing companies so may well be able to save your client and we can employ your services for which you will get paid!
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Worried about poor cashflow? How to win new work? How to pay wages on pay day? For expert advice on a range of issues download our free Ultimate Guide For Worried Directors today. Or just call us on 0800 9700539
Please note that the guide was written pre Covid-19 and there are some likely changes to insolvency rules regarding wrongful trading. Please see this page here.
Author of this page is Keith Steven who is the Managing Director of KSA Group Insolvency Practitioners