Accountants Underestimate Impact of Compliance and Cash Flow

Contrary to expectations, more than a quarter of practicing accountants say compliance is the most problematic area of their business. According to a survey released today by Bizezia, only six per cent of accountants anticipated compliance would be a major concern before starting in practice. However, over 25 per cent said in reality it was actually their biggest problem.

Bizezia, the provider of online management and marketing tools for professional firms, also found that none of the respondents expected cash flow to be a problem. In practice, more than 22 per cent accountants stated it was their biggest issue when trying to run a successful business.

Commenting on the results, Martin Pollins, founder of Bizezia, Chartered Accountant and ICAEW council member, said: “Compliance is a growing concern for the profession. The level of regulatory control has dramatically increased during the past 10 years and so too has the required administration. This has created a major problem for accountants as, if not managed correctly, it can eat into valuable fee-earning time which then affects cash flow.”

When asked what they most disliked about starting their own practice, the top answer amongst accountants, with 38 per cent of the responses, was red tape. 

In response to this Martin Pollins added: “Accountants can easily become overwhelmed by administrative duties. Alarmingly, a quarter of the respondents in our survey felt they were not yet ready for their practice assurance inspection.

“Through first hand experience, our advice to these accountants is to maximise new technology and put robust procedures in place. Tools such as intranets can help organise documentation and provide automatic document trails, while a choice of standard engagement letters reduces admin time and speeds up the billing process.”

For more information on how accountants can maximise business efficiencies and add value to their clients please visit www.bizezia.com

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Notes to editors:
Bizezia provides online marketing and management tools for professional firms and their clients. The company offers a wide range of value-added products, which improve business efficiencies and aid compliance. These include a comprehensive library of business publications and monthly client magazine personalised to each firm, as well as a Contract Engine system of 150+ engagement letters for accountants and 200+ client care letters for lawyers.

Further added-value tools include online financial planning calculators and easy-to-use Work Manual.

Martin Pollins first started work on the Bizezia concept in 1996, developing the broad range of information resources and products over the past ten years. Bizezia is based in Haywards Heath, West Sussex.

All press enquiries to:
Iman Rouane
Bizezia
Tel: +44 (0) 870 389 1409
Email: iman@bizezia.com