While AI may arguably be the most significant change in the accounting world, the continual increase in corporate insolvency is where accountants should focus their attention, writes Trevor Withane.
Corporate insolvency on the rise
Australian corporate insolvency appointments have almost tripled since the 2021–2022 financial year, with the highest numbers occurring in NSW. The hardest-hit industries have been construction, retail, and hospitality, with the firms most vulnerable to insolvency being small-to-medium-sized enterprises.
What’s driving insolvency rates
- Conclusion of pandemic support: JobKeeper and business support payments obscured companies’ true…