Accountants suffering toxic debts

Posted by PM | on Wed, 14/10/2009 - 08:00 5660 4 comments

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:

Continued...

Heh!

nogammonsinanun... | Wed, 14/10/2009 - 14:20 | Permalink

I wish that we had the "problem" of negative w.i.p.

With kind regards

Clint Westwood

Sorry - but your headline seriously undermines your credibility

Anonymous | Wed, 14/10/2009 - 15:25 | Permalink

Negative work in progress is a GOOD THING for accountants and helps avoid some of the problems that you cover in your article. For example if you are paid in advance you won't have a bad debt.

Is it too late to change it?

Blame the deputy editor!

Gina Dyer | Thu, 15/10/2009 - 11:10 | Permalink

Thanks for spotting that. Please don't blame Finola because it was an error that sprang from my editor's pen and not from her! I have now amended this. Apologies for the oversight.

Some accountants do the strangest things.

Anonymous | Fri, 16/10/2009 - 15:16 | Permalink

Recently a small firm of chartered accountants in London with a turnover of £270, 000 took an a new member of staff £50,000 a year for four days a week which works out at £34 per hour but only being charged out at a rate twice that. Shortly thereafter they lost (unconected reason)a large client worth £24,000 pa. Result his cashflow is shot to pieces, does not pay his sub contactors on time, a long time staff member leaves because of overpaid and inexperienced starter, unpaid debtors have shot up & the firms profits have evaporated. Some accountants bring it on themselves !