Accounting firms are increasingly at risk of being owed bad debts by business clients who go under, the Australian personal insolvency regulator has found.
The Australian Financial Security Authority (AFSA) has marked accountants as one of six common businesses that are highly exposed to trade credit debt, with new statistics revealing that such debts are now almost on par with bank debt.
In the September quarter, the AFSA found that people in businesses who entered into a personal insolvency owed 32 per cent of their debts to another business, sole trader or individual.
Bank debts, in comparison, accounted for 35 per cent.
AFSAs chief economist and statistician, River Paul, said the new figures were significant, noting that bank debt…