The process of running an organisation and being in charge of a company is going to vary from person to person depending on the industry that they work in. The lessons that people pick up along the way are unlikely going to be universal; however, that doesn’t make any of them less prevalent. That being said, when an organisation falls on hard times, even though the means by which they get out of these hard times might change, there are certain lessons which need to be adopted regardless of the business or its industry.
Insolvency is a term which is used when an organisation is no longer able to pay off its debts when they fall due. When a company becomes insolvent, it may have to file for liquidation. At Simple Liquidation, we help businesses who are in this position, sitting down with them, and finding out what they do and what their issues are, which allows us to provide advice on how they can effectively move forward.
In conducting our work, we have learnt a number of valuable lessons that you should keep in mind when looking for insolvency practitioners to work with and when actually going through the liquidation process. These include some of the following:
Check Their Qualifications
If you are looking to work with insolvency practitioners then you need to make sure that they have the right qualifications in place. The top insolvency practitioners need to have good mathematical competency because a large portion of their role involves preparing accounting statements. A lot of different insolvency professionals specialise in accountancy before they move over to liquidation, with around 50% gaining an accountancy qualification in their practice. They don’t have to have this qualification but by working with practitioners that do have it means you can rest easy knowing they possess the right knowledge to advise your business moving forward.
Ensure They Know the Law
Insolvency practitioners also need to be well versed in the law as a large amount of the liquidation process involves going through the courts and having a thorough understanding of what the law is and the legal implications that might impact a business. They should be able to effectively read and interpret the laws which govern their profession too. Work with individuals in order to determine if they are good at English and are able to better comprehend complex legal jargon.
Communication is Key
There are a number of important aspects throughout the liquidation process but one of the most important is communication. Throughout the entire process, people need to continue communicating with one another, whether this is the creditors, the business or the insolvency practitioners themselves. This makes it so that everyone is on the same page and everybody knows what the current position of the process is. Insolvency practitioners need to be good at communication so keep this in mind when it comes to appointing one, if you do not feel like messages are coming across or they fail to keep you in the loop right away, it may be worth considering a different organisation. Practitioners will need to work with various parties, all with equal importance, throughout the liquidation process and as such, they need to be able to speak to people clearly and concisely.
Work With People Who Are Discreet and Personable
This is a complicated and stressful process, one which you are not going to be able to benefit from if you are too stressed out about the whole thing. As such, you need to work with people who are going to be effective in keeping you level-headed. Firstly, you want to know that the information exchanged will remain confidential. On top of that, you want to work with someone who you believe genuinely cares about your business and who you don’t mind taking specific queries to. If you have somebody who is discreet and personable then the entire process will be a lot more stress-free and you can enjoy the fact you can keep your cool when it comes to digesting information and making vital decisions on how to move forward.
Don’t Leave Things Too Late
An important piece of advice that you need to keep in mind if you are insolvent is to not leave things too late. If you are struggling to meet your debts and can see that finances are going to be a struggle moving forward then you should try to get on top of them sooner rather than later. If you voluntarily go for liquidation then you will be able to choose your own liquidators and also put yourself in a better position when it comes to reaching an agreement with your creditors. If you leave things too late then it may be the case that you are forced into liquidation which puts you and your business on the back foot. It becomes harder to reach an agreement with your creditors and on top of that, your business becomes harder to save. Just because your organisation is in a tough situation doesn’t mean that it definitely needs to close, and the sooner you admit to and begin to tackle your issues, the more likely you will save your business.
Are You Looking for Help with Your Business?
If your organisation is currently experiencing a difficult time then it may be worth reaching out to insolvency practitioners who are going to be able to help. As can be seen above, there is a lot that you need to consider when it comes to picking an insolvency practitioner, for instance, they need to have good communication skills and they should have solid knowledge of both accountancy and law. At Simple Liquidation, we will be able to help your business by providing these important attributes and more. We will sit down with you in order to find out what your business does, what your current situation is and provide advice on how to move forward. If you have any questions or require any further information then do not hesitate to get in touch.
