An average of 25 companies went out of business and an estimated 1,075 jobs were lost in Ireland every week during 2010.
Figures released today show the businesses most affected were property companies, restaurants, hotels, retail and motor firms.
Accountants Kavanagh Fennell say that while there was no let-up in the number of companies being declared insolvent in 2010, the increase on 2009 was not as high as expected.
Business information firm Vision Net says five companies closed every day last year, a decrease of 8%, while liquidations were also down by 8%.
The construction sector saw the majority of companies going out of business, followed by the services sector and retail sector.
The hospitality industry saw 194 bars and hotels close in 2010.
Leinster accounted for over 65% of all insolvencies, followed by Munster with 21%.
Meanwhile, the group representing small firms has said job creation must be at the heart of policies for economic recovery.
In a statement, the Small Firms Association said the services sector continues to be the hardest hit, with 21,287 (38%) of jobs lost.
It said the situation is being compounded by the downturn in consumer spending.