One of the side effects of being an active networker I get to learn about the horror stories of businesses that are not my clients. Learning about other company errors or mistakes that caused a downslide, may help me protect my clients by looking at similar early warning signs. I learn of these stories from other CPA’s, bankers, payroll service reps, financial advisors, insurance reps, etc.
Now, I may not get names of these companies which would be inappropriate, but I get a lot of details. I know that there are several companies that cannot get payroll service because they are behind in current payroll tax payments.
There is a NFP that carelessly let themselves get involuntarily dissolved with the IL Secretary of State, it seems that the Executive Director thought it was a small matter and to my knowledge stills has not reactivated the organization. I don’t believe they filed 2017 taxes either.
Another company has such a problem with cash flow that they almost had their medical benefit plan revoked on a couple of occasions.
There are businesses out there that are losing or getting their LOC’s decreased because banks are not happy with ratios, or the banks are looking to get out of these clients business segments.
Some of the downward slide is from company mistakes or gross mismanagement; others are due to outside forces. Either way plans need to be put in place, correction need to be made to allow the business to propel itself forward. We can assist those who want a fresh opinion.