Bad debts are on the increase among accountancy practices, but it doesn’t have to be like this, argues practice consultant Finola McManus.
The recession has put considerable financial pressure on clients and as a result, accountants are suffering the after-effects. Some of the most common problems at the moment include:
- Debtor days extending: Practitioners are experiencing continued difficulties in asking clients to pay when they know they are struggling with cash flow themselves.
- Poor cash flow: This often results in difficult decisions to be made about spending, expansion and driving the practice forward as planned.
- Payments missed: Clients are not paying when they promised to and payment plans are no...