Hidden cause of business bankruptcy.

[CALVINDOL]

In as much every business owner believe and absolutely know about what it means for a business to go bankrupt and by definition a business to go bankrupt is a kind of business that I've lose all its assets and most importantly all its properties and such business is also called or known as a liquidated business or a shutdown business . There are indeed a whole lot of things that could make a business go bankrupt or should we say liquidate or shut down but yet some of these things are things that are openly known by majority of business owners and that is why they pivot their various businesses in such a way so as to douch this stains from coming anywhere near their business .

Today I will be talking about One hidden problem that absolutely leads to a business going bankrupt and that is the improper checking of business books of account . In other words we are talking about bookkeeping and when a business books of account is not properly kept it becomes scattered and business information mostly essential ones are not being retrieved as expected or as planned and that is why majority of business in the process of finding this information go as far beyond their reader .

 

[Jasz]

There are many causes of business bankruptcy and liquidation, aside from for poor business bookkeeping.

These include:

-Fraudulent activity. This is when the owner of a company is doing something illegal with the business, such as selling drugs or laundering money.

-Poor management. This is when the owners or management of a company are making poor decisions and mismanaging resources, which usually results in poor sales, overspending, and more.

-Lack of sales. When a business has trouble selling its products or services, it can't make enough money to pay its bills or buy more inventory.

-Inability to manage cash flow. This is when the business doesn't have enough money coming in at any given time to pay its bills and other expenses like rent or payroll without going into debt.

-Changes in technology that make your product obsolete or less effective than competitors' products.

In as much every business owner believe and absolutely know about what it means for a business to go bankrupt and by definition a business to go bankrupt is a kind of business that have lost all its assets and most importantly all its properties and such business is also called or known as a liquidated business or a shutdown business .

 

[Sotherefore]

Ok , I understand. This problem has to do with the accounting department of any business organisation because this is where it is likely to affect the Most.

yes I understand , this is very important most especially in today's business because it will help the business on so many things and to address any problem when necessary.

Normally there are so many functions of business bookkeeping . One of the greatest function is that it will help the business management to know when they are on profit and also when they are on loss . The amount of profit or loss the business encountered will still be recorded.

When all these complete informations are not provided , the business might not be managed properly. This is something very serious because it is one of the things that leads to a lot of business's failure most especially in a well standard business.

 

[TOZZIBLINKZ]

I literally do not believe that there is any business owner or any business manager running a business of any kind that wishes for his business to go bankrupt Some day . Rather every business owner who wants his or her business to flourish and in the process of making his business to flourish he or she will always do his utmost and also do his best to make sure that his business attorney greater and higher heights . But no matter how far we scream this matter there are some business run by overconfidence business owners and because of this their businesses will always feel possibly because of their overconfidence .

There is literally no seemingly reason why a business will go bankrupt apart from the fact that the business owner exhibit negative attitude of overconfidence . It is actually not a bad thing that a business owner should be confidence to what his or her business but what is definitely not advise is the fact that he or she over feel confidence in his or her business and what that means is that he or she does not regard to the opinion of others and view others as learners or newbies compared to him or her . It is advised to throw away this bad attitude because it has no positive effect on the life of the business .