One of the most recent new stories to hit the media that you don’t want to miss out on is the recent finding that many UK SME’s do not have a good understanding of their own business finances and are putting themselves in great risk because of this.
Less than half of accountants in the UK feel that the clients they are currently working with understand everything surrounding their own financial statements and over half of those accountants also think that their clients feel rather out of control when it comes to their financial activity.
Running a business is definitely going to be a financial challenge for many, especially those who aren’t well-versed in this, but one thing is for certain and that is most people are not taking the time to better understand what they need to know.
Almost half of the accountants surveyed also stated that their clients have expressed concerns that their finances were complicated and confusing. A feeling of being highly overwhelmed is often enough to put anyone off, that’s for sure and 40% of accountants believe that their clients are turning a blind eye when it comes to their fiscal affairs.
Whether this is primarily due to a simple lack of understanding or just negligence on their case varies from person to person, but it’s clear that the understanding that should be there is not.
Accountants report that most clients are not discussing their finances with them on a regular basis and over a third are only doing so once or twice a year.
It’s simply not enough if they want to stay ahead of the game and feel in control over their finances at all times.
Most accountants also feel that their clients are making spontaneous decisions that are going to come back to haunt them in the years ahead.
Proper planning is critical for business growth and management, yet people are just not putting in the time or effect to get this done.
For most people, the focus is one minimal involvement to get by, rather than maximal involvement to ensure best policies and reporting are in place.
This is important news for all of those involved.