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!)
- Capital allowances or revenue is capital? 74 1
- any implications of this type of transaction 47 1
- How much did you pay for your website 1,681 28
- Sage 50 cost centre limitations 96 3
- What font do you prefer to use for correspondence? 283 11
- Straightforward email correspondence or PDF letter attached to blank email? 1,029 13
- How to post Sales figures in Sage50 Accounts (we use separate Sales ledger) 262 7
- Sage data 102 1
- Course costs for retraining as a barrister 422 9
- Limited company buying a car 361 6
- Funding Circle experience 154 3
- Excel query 117 2
- Do I need to pay my accountant 1,293 13
- Payment on account penalties 127 3
- Tax on free shares 143 5
- Flat Rate Vat 14.5% and 5% reduced rate VAT 208 3
- Capital allowances on sale and puchase of business assets 125 1
- Audit 490 14
- PPR relief and half hectare rule 127 3
- Buying a horse?? 429 12
- CTA study material 805
- Anyone have clients that use Pay4Later to offer customers credit? 496
- Raiders of the Lost Tax File 461
- Employment related securities question 322
- AIM Stocks and IHT 311
- Expat pension contributions? 281
- Tax Relief for overseas employees 281
- Trust for Employee 256
- Service Charge Accountant Career Options 232
- IPP (International Pension Plan) income 161