In Australia, around 370,000 businesses close each year. That’s roughly 1,000 businesses shutting their doors every day. Most had advisers. Most did not expect to fail 12 months earlier.
Insolvency is often treated as a late-stage issue. In reality, it is a normal part of the economic cycle and something every accountant working with SME clients will encounter.
The more important question is not whether insolvency happens, but whether the conversation starts early enough to change the outcome.
Insolvency is not just a business issue
There were 11,644 personal insolvencies in Australia in the 2024–25 financial year. Many of these are directly linked to business failure through personal guarantees, tax liabilities or director…