With a seat on the reference group for the Insolvency Practices Inquiry currently being conducted by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), the Institute of Public Accountants (IPA) has asked its members to email their thoughts and comments on the key areas being covered by the inquiry.
The aim of this inquiry is to assess how to better assist small businesses to navigate insolvency, before, during and after, including whether more needs to be done in the pre-insolvency stage.
The IPA is seeking insights from members on:
- Transparency around the insolvency process – should more information be provided before, during and after the insolvency?Â
- The impact on the small business person’s mental health – should any proceedings be paused?Â
- Ways that accountants can support small businesses in seeking assistance earlier to prevent business failure and what support could be provided post-insolvency?
- The administration processes involved with insolvency – how can they be simplified/streamlined?
- Are the costs reasonable or should they be more closely monitored?
- What can small business people do to ensure they don’t fall into financial distress?Â
- Should education be mandatory before people start a small business or how can they be encouraged to become more financially and business literate?Â
- Do you have any case studies you wish to share with the inquiry (names and identities are not needed)?Â
All comments can be emailed to vicki.stylianou@publicaccountants.org.au.
For more information on the Insolvency Practices Inquiry, including the discussion paper with a full list of inquiry questions, visit https://www.asbfeo.gov.au/inquiries/insolvency-practices.
