It is clear that investing in high quality accounting software packages is an efficient way to keep a business on the right track and to keep off threats brought about by insolvency.

This came after AAP’s report that there was a 21.1 per cent increase in terms of the number of Australian firms that hit financial meltdown in June.

It is expected that the number will rise further in the coming months according to Taylor Woodings, the accounting firm that did the research.

“Most of them are where there's been a problem for a number of years. It's not indicative of the current economic climate,” said Michael Ryan, managing partner of the firm. It is seen that such problems can build up over time.