In the latest report from ASIC
64 percent of companies entering external administration had less than 5 employees. Fifteen percent had 5-19 employees. This data shows that 79 percent of corporate insolvencies in 2014-15 were small businesses.
85 percent of collapsed businesses in the last financial year had less than $100,000 in assets and 41 percent of failed companies had estimated liabilities of $250,000 or less.
The top three nominated* causes of failure were:
- 44%—inadequate cash-flow or high cash use
- 42%—poor strategic management of business
- 34%—trading losses.
If your business is suffering cash flow issues or you don't feel confident in the strategic financial management of your business, contact CFO Part Time to see how we can help you.