Company’s financial difficulties and their prevention

Call the Financial counselling for entrepreneursOpens in a new window. if you are unsure of your company's situation and do not know what you should do.

Also contact your accountant.

If you are concerned about your personal finances, you can ask for advice from the Financial and debt counsellingOpens in a new window. and Debt Line telephone service (only in Finnish)Opens in a new window..

Find out if you could receive general housing allowance and social assistance.

Tell your loved ones about your situation honestly. Seek help and support for your own coping, for example at a nurse's or doctor's clinic. Talking with other entrepreneurs can also help you cope.

Use the income statement, budget and cash flow statement to determine your company's financial situation. Ask your accountant, the development company in your region or the business mentors for help in interpreting the figures.

Develop your company's business by:

• Updating your business plan.
• Focus on customer acquisition and sales.
• Prepare a financing plan and monitor the implementation of the budget.
• Invest and apply for business subsidies.

You can get help in developing your business from your regional development company, the Finnish Enterprise Agency or the Enterprise Finland telephone service.

Prepare for risks by:

• Preparing a contingency plan for your company.
• Ensuring you have enough money for payments for at least three months.
• Making sure that your self-employed person's pension insurance income is up to date.

Always remember to:

• declare and pay your company's taxes and employer contributions
• report your earnings to the earnings-related pension company and pay your entrepreneur's pension contribution
• ensure that your company's accounting is lawfully arranged.

If you have difficulty paying taxes and fees, negotiate with the Tax Administration and the employment pension company on the payment arrangements.

Contact the creditor immediately if you cannot pay the invoice or debt by the due date. Negotiate a new payment schedule by changing the due date or by other means. If changing the due date does not help to make the payment on time, request a longer-term payment arrangement.

Find out if your company can get a debt arrangement or restructuring before considering termination.

Call the Financial counselling for entrepreneurs when you want to discuss the arrangement of debts.

If your company is still solvent but does not have sufficient prerequisites for profitable business, it is usually worth closing down business activities voluntarily.

If the company is insolvent, heavily in debt and unprofitable, it may have to be dissolved through bankruptcy proceedings.

Note that selling the company or different company arrangements may be an alternative to closing it down.

Call the Financial counselling for entrepreneurs when you are considering the termination of business operations.

Always remember to take care of these matters when you close down your business:

• Submit a notification of termination to the Business Information System (BIS)
• Notify and pay taxes and other charges throughout the year of termination
• Keep records until the end date of business activities
• Cancel the insurance policies and other agreements connected to your company
• Amortize or transfer company mortgages
• Keep accounting records for 6-10 years.

Read instructions for securing your livelihood after the end of business activities in the Employment and subsistence guide.