Are you trading insolvent?

This is one of the most critical question Board Directors ask regularly, you must be fully aware of the company’s financial position at all times. During difficult economic times, when there are substantial headwinds, businesses must pay close attention to their cash flow position, forecasts, supplier arrangements, and, in particular, the position with the ATO in regard to tax liabilities. Directors have no excuses to not be fully informed, and should be going on the front foot to ensure that you are prepared for more challenging financial circumstances as the economy moves towards deep recession.