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!)
- BTC Software 111 5
- Recommendations for payroll/AE software? 233 6
- Offshore company transferring assets to a UK individual. 195 6
- Feedback on Kashflow and VAT 36 1
- Sage reporting 36 2
- CGT on second home? 20 1
- Myfirmsapp 674 16
- Allowable expenditure when claiming wear & tear 61 2
- accounts & tax software for small accountancy firms 838 29
- Does anyone have a formula to compare employment to self-employment rates? 476 12
- Taxfiler V's BTC 664 25
- Directors loan accounts 120 4
- Data Protection and emailing documents 1,156 17
- New Practice 244 14
- Can I zero rate the VAT? 143 3
- HMRC 2009/10 Return 261 4
- Goods Purchased for Rental 542 29
- UK Tax Treatment of Finance Lease Payments 103 1
- Why do HMRC have a different FPS liability to the amount I sent? 2,000 25
- Valuation of business 316 5
- Nil Rate Band Trust - index linked debt by way of charge over property 1,010
- International interest certificate 589
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 516
- NOVA 472
- Bonus Bonds 357
- Insolvency and whistle blowing 337
- Transfer of funds into recently set up company 257
- Payment for Promotional Samples 230
- TPR imposes first penalty notice fines 224
- Quickbooks 2015 154