Business liquidation, how to limit losses?

Published on : 22 October 20213 min reading time
Every entrepreneur who decides to build his business has the same motivation; which is none other than to succeed and grow. But this is not always the case. If indeed, others succeed and even make their way to the international level, some have succumbed some time after their creation. The latter often undergo legal proceedings in terms of liquidation. And even during this difficult phase, the adventure becomes more complicated and the losses multiply. So, we wonder if there are some ways to limit this?

Keeping track of your accounting

It is true that to see one’s company dissolved and liquidated is not an easy thing, and that one is obliged to proceed with various formalities in this regard. But you should never neglect your accounting. And even if the company is declared in cessation of activity, it is still valid because the social and fiscal charges must always be paid in order to avoid penalties and increases. It is also useful to take a look at the accounting from time to time, to make sure that no disloyal acts are carried out. This could thin out assets and increase losses.

Respecting the rules of the procedure

During a liquidation procedure, it is possible that the manager or the partners of the company are subject to some summonses, at the level of the Court or other bodies. And often, there are those who ignore these phases, saying that they are already bankrupt and that they have nothing more to lose. However, it should be noted that the failure to comply with the procedure is penalized and will only increase the burden on the company. Consequently, the assets that will already be used to pay all the creditors and the other mandatory charges, will still be used to pay the penalties.

Knowing how to stop and leaving assets intact

When a company is in trouble, the manager can sense in advance that it will not be able to get out of it. Therefore, it is better to know how to withdraw and declare yourself out of business at the right time. In this way, the cost of the liquidation procedure will be more or less alleviated; but the losses will also be limited. Because sometimes, the more one persists in recovering, the more one sinks. But then again, it is better to stop using the assets so that they can cover all the liabilities during the liquidation.  This way, the manager will not have to worry about debts that are not paid because of insufficient assets.