In the real economy . . .
It has been suggested to me that clients who are used to their businesses being profitable are failing to adjust to lower profits being made now. Is that your experience?
One accountant said to me that clients were used to spending money from their businesses and 'covering' that with dividends at the year end. The clients had not reduced their expenditure (and were to some extent unable to do so because of kids' school fees or whatever) but were now finding the profits did not support sufficient dividends to 'cover' the 'drawings' they had made during the year.
Is that just one accountant's experience or is that common?
Is it perhaps the case that many businesses either have not yet been hit by the recession - or have been hit but do not have accounts showing them what the effect has been on profit?
If so, when will the impact be felt / recognised?
Discuss! (or not if you prefer!)
- VAT flat rate scheme 173 3
- Tax relief for backdated pension contributions 250 8
- Client cash balances, on or off-balance sheet for full service brokerage firm 231 4
- Client information from previous accountant 73 1
- Closing down - who should buy whom? 92 2
- How long do legal aid take to pay? 77 1
- Two questions re client meetings and TR Fees 361 5
- Personal Pension Withdrawal 218 2
- Liability account to deal with loans from owner 132 5
- Failure to operate PAYE 1,658 31
- PAYE NI 112 2
- quote for winding down two companies and file accounts 116 1
- SA302s - Lenders to accept non hmrc copies 821 14
- How much to charge? 701 10
- break even point 1,006 30
- Trustee in Bankruptcy 179 5
- Accomodation and travel 206 1
- Unpaid Fee's 354 6
- Issue with a software supplier 241 4
- Is there a requirement to clearly state the amount of a bill? 315 5
- Possible Partnership? 514
- Lunatics in charge of the asylum - Bluestone 495
- Tax and accounting treatment on long lease granted from freehold 469
- New Fangled Penalties 309
- Clubs and Taxable Income 260
- Purchase of property freehold - capitalisation of costs 257
- Deferring taxable income until after 5 April 251
- Loans to other companies 193
- Tasbook email configuration 186
- Closed PAYE schemes and auto enrolment 169