From www.salea.com.au: Discussing insolvency with clients is crucial as early intervention can lead to better recovery options, particularly in light of the 39% increase in Australian businesses entering external administration in the 2023-24 financial year.

Advisors should approach these conversations by focusing on business viability, framing insolvency as a strategic decision rather than a failure, and presenting clear pathways forward, such as Small Business Restructuring and Voluntary Administration.

Timely and constructive discussions can help clients navigate financial difficulties effectively and preserve business value.