The strong Australian dollar is another reason for the rise in solvencies, according to Luke Targett, a partner at accountancy firm PKF, who says directors are beginning to realise it is often better to place a company straight into voluntary administration.
“If a business can’t be saved, it can be cheaper and quicker,” he says.
“Retail, exports, manufacturing – they’re all plagued by the same problem, which is not being competitive in terms of the strong Aussie dollar.”
There is very little you can do to influence the strength of the Australian dollar, but you can ensure that your business isn’t overly-exposed to it.
Don’t rely too heavily on one export market, diversify your offering if needs be and make small but potentially sales-boosting changes such as offering your products in local currencies.
