Accountancy Firms Failing to Avoid Financial Problems Should Know Better
Of all the people who should have more than a small clue about running a tight ship then it would probably be accountants. But this does not appear to be the case. The stats thrown up by Begbies Traynor’s Red Flag unit identifies up to 500 firms as being in financial difficulty. That means that they are loss making, having negative balances on the balance sheet, filing accounts late or facing court action reports Accountancy Age. Concentrating on everyone else’s …
Of all the people who should have more than a small clue about running a tight ship then it would probably be accountants. But this does not appear to be the case. The stats thrown up by Begbies Traynor’s Red Flag unit identifies up to 500 firms as being in financial difficulty. That means that they are loss making, having negative balances on the balance sheet, filing accounts late or facing court action reports Accountancy Age.
Concentrating on everyone else’s financial statements and neglecting your own is probably a little dumb. But the demise of Titcheners, which entered into administration after its acquisitive strategy failed, is unlikely to be the last. Over 70 firms have gone bust in the last year and a half. And any that don’t practice what they should be preaching, strong credit management, had better be prepared for the worst.
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