12 months on from our first survey, the relationship between company director and their accountant is still as vital as ever. The transition to what will be the ‘new normal’ in regard to trading is prompting requests for further advice and one-off pieces of work. Financial support from the government is tailing off and business owners will need to make some tough decisions.

Just as it has been over the last 18 months, the impact of coronavirus continues to be an opportunity for accountants and their clients to build a long-lasting relationship, opening up wider conversations about the business as well as how their needs could be serviced better and more effectively.

THE OUTLOOK IS STILL TROUBLED.

When we asked accountants if they think they will lose more clients than usual to insolvency and/or fee pressure over the next 12 months, the majority (58%) still believe that they will. In the first survey this number was 78%. This change in opinion could be for a number of reasons: those clients expected to close now have; those clients expected to close have made the necessary changes and are now in a stronger position financially; the experience of managing and surviving the last 18 months has shown their client base is much more resilient than initially thought.

THE TIME IS NOW.

Two thirds of those who completed our survey stated that they were experiencing an increase in the level of urgency to respond to their client’s needs. From our experience, making decisions under pressure isn’t the most effective and is why we try to encourage accountants and their clients to open up about their circumstances as early as possible.

We’ve also observed business owners continually kicking the can down the road, with their financial troubles cushioned by the government support. It’s been beneficial to have breathing space but how many have utilised it so that they can make informed decisions about the business without added stress or pressure? Most likely not enough.

WHO’S YOUR TRUSTED ADVISOR?

No one is closer to your clients than you. That can be a difficult place to be, especially if those clients who are really struggling are the ones you’ve had for several years. The conversations we’ve had with accountants over the last 18 months have been those exploring all avenues for their clients, to restructure the business and move it forward.

We really are here to help. The writing isn’t on the wall for every business because of the impact of the coronavirus pandemic, but chances for recovery or restructuring reduce the longer time goes by with no action taken. Those early warning signs are there.

There’s nothing to lose from picking up the phone and having a confidential chat about any client you have concerns for. Call us on 0808 196 8676.