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How do I know if my company is going downhill ?(money wise) before I get bankrupt...

How do I know if my company is going downhill ?(money wise) before I get bankrupt because till this day I had no such problem but when the day comes I want to be prepare!!!

What should I review or see.?

Solutions

Expert Solution

When the business is not running well, there are several signs to judge and calculate the performance which are:

  • Decrease in sales.
  • Difficulty in payments to the creditors.
  • Limited access to capital
  • Negative cash flow
  • Holding employees salary
  • Clients start to decline
  • Postponement of the projects

It is important to make smart decisions when one finds the company in disorder and notice downhill of the company. The current performance of the company may be compared with the past performance. The management should be clear of the financial performance of the company.

When the company has considered various alternatives and have finalised going for declaring bankruptcy, the below points should be considered:

  • Stop borrowing money
  • No usage of credit cards
  • Plan the recovery
  • Don’t touch the retirement savings
  • Never provide dishonest information
  • Stop moving assets
  • File income tax returns on time

jeff jeffy answered 2 years ago
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