Intheblack - Accountants and Client Insolvency

Accountants and Client Insolvency

Recently, In The Black – CPA Australia’s business magazine – published an article entitled, “Accountants and client insolvency: what you need to know“. It provided a brief but important insight into the relationship between accountants and their clients and, hopefully, liquidators. Angela Smith, partner at SLF Lawyers, noted a reluctance on the part of some accountants to engage registered liquidators when their clients are struggling financially. Indeed, we are often surprised , if not disappointed, that our services are required well after a business has passed the point of accepting advice on how to avoid liquidation. Our managing partner, Shabnam, was cited in the article. And, as always, she emphasised the importance of accountants having good connections with liquidators and reaching out to them sooner rather than later when their clients begin to face difficulties.