Going into administration can be intimidating. Unfamiliar terminology and lengthy procedures can leave business owners feeling overwhelmed and uncertain about the future.
If you’ve found yourself in financial difficulty and you are considering entering administration we’re here to help. At RS Accountancy, we make the administration process stress free. We make each step simple and easy so that you can strengthen your business and get back on track. We can help review the nature of the difficulties you’re facing and find a solution so that you can turn things around. Our goal is to help you to continue and grow as a business.
What is Company Administration?
Company administration is the formal insolvency process that is used to rescue insolvent companies. There are many reasons why you may consider administration including the following:
- The withdrawal of support from stakeholders (bank investors, key suppliers etc.)
- Built up debt from unpaid HM Revenue and customs costs
- The loss of key customers
- The resignation of key personnel within the business
- The threat of legal action against the business
Yet, administration is often misunderstood as a punishment. In fact, administration is an effective and efficient way to regain control when your company is insolvent or facing threats from creditors. Going into administration, means that your company is taken over by an administrator who is a licensed insolvency practitioner. Their role is to help restore the company to profitability. When an administrator is assigned a moratorium is placed on the company which stops all legal actions. This means that your company’s creditors can’t start insolvency procedures or take legal action against you. Think of it as a security measure that protects your company when things get tough.
How long does company administration last?
There’s no hard-and-fast rule for how long the process of administration can last. It can range from a few weeks up to a year or more. What you can be assured of is that your administrator is obligated to perform all duties as soon as possible. In general, an administrator will have a maximum of 8 weeks to file all the necessary paperwork and send out proposals to the creditors. These proposals will include the details of the events that led to the process, the goals that have been set and how they will be achieved. Our staff are quick, efficient and effective in all aspects of company administration, so you can get back on track.
How we can help with your Company Administration process
Each business is unique and has its own specific set of needs when it comes to company administration. That’s why every one of our clients receives a bespoke service that mirrors what you need and want. Below are some of the most commonly requested services:
- Share transfers: Shareholders own the business and you may at some point need to transfer your shares to your spouse (usually for tax reasons), or to transfer shares to a key employee or business partner. We can complete the share transfer documentation for you and file at Companies House.
- Company Closure: Sometimes, things change and companies can close down. We can complete the necessary work for a company closure and file with Companies House and HM Revenue & Customs.
- Change of Company name or registered office: You may need to change your company name or registered office, which we can do for you quickly and efficiently.
So, if you’re in need of company administration — don’t hesitate. Contact us today.
RS Accountancy is here to support your small business goals. Our expert Leeds-based accountants service the entire country, helping you manage your financial responsibilities and grow your business.