Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
A total of 36% of accountants and financial advisers have seen their cash flow worsen over the past 12 months compared with 29% who said it has improved, according to a study by Premium Credit.
The study, which was conducted among 105 professionals, found that one in three (33%) expects their cash flow to deteriorate in the next year, while 31% expect it to improve.
Almost all (91%) of the accountants and financial advisers surveyed said that a rise in clients struggling to pay their fees has contributed to their deteriorated cash flow, with 34% saying this is the main contributing factor.
The fact that more clients are struggling to pay their advisers’ fees helps explain why 81% of accountants and financial advisers allow some clients to pay their fees monthly over an extended period of time.
Jennie Hill, chief commercial officer of Premium Credit, said: “Like many businesses, accountants and financial advisers are prone to cash flow issues if their clients are struggling to pay their fees, which our research suggests many are.
“However, our study shows that many accountants and financial advisers are being flexible in helping clients who are struggling to pay their fees by enabling them to spread payments over several months.”
