Originally written by Timothy Adler on Small Business
Writing off the £42bn worth of Bounce Back Loans that have been issued to small businesses is going more effective in the long-run than chasing debts which will never be repaid.
So says accountancy association the AAT, responding to the withering assessment of MPs investigating the Bounce Back Loan Scheme (BBLS).
Nearly two thirds of Bounce Back Loans, designed to help small businesses survive Covid-19, may never be repaid, according to the government’s own figures. That would leave the taxpayer staring at a loss of £26bn.
>See also: Europe’s small businesses call for three-month post-Brexit transition period
Writing off the entire £42bn worth of Bounce Back Loans would save the government £1bn in interest payments alone paid to banks while they chase bad debtors, and free up banks not to waste time working with costly debt recovery agencies.
Back in June, ex-chancellor George Osborne said that all emergency Covid-19 financial support should be written off – an assessment the AAT agrees with.
Taxpayers are facing a hit of up to £26bn because the government failed to “strike the right balance” between rescuing companies and protecting the public purse with an emergency loan scheme, MPs have warned.
>See also: Government plans
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Writing off Bounce Back Loans would be best thing to do, say accountants
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Writing off the £42bn worth of Bounce Back Loans that have been issued to small businesses is going more effective in the long-run than chasing debts which will never be repaid.
So says accountancy association the AAT, responding to the withering assessment of MPs investigating the Bounce Back Loan Scheme (BBLS).
Nearly two thirds of Bounce Back Loans, designed to help small businesses survive Covid-19, may never be repaid, according to the government’s own figures. That would leave the taxpayer staring at a loss of £26bn.
>See also: Europe’s small businesses call for three-month post-Brexit transition period
Writing off the entire £42bn worth of Bounce Back Loans would save the government £1bn in interest payments alone paid to banks while they chase bad debtors, and free up banks not to waste time working with costly debt recovery agencies.
Back in June, ex-chancellor George Osborne said that all emergency Covid-19 financial support should be written off – an assessment the AAT agrees with.
Taxpayers are facing a hit of up to £26bn because the government failed to “strike the right balance” between rescuing companies and protecting the public purse with an emergency loan scheme, MPs have warned.
>See also: Government plans
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How to change your small business accountant in 10 easy steps
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Eighty per cent of small businesses work with an external accountant or bookkeeper. However, 70pc of small business owners would not recommend their accountant to others and more than a quarter said they are likely to switch accountants, according to small business platform Xero.
On top of that, over one third of small business owners would tell others to avoid their accountant, as they feel they don’t understand business challenges, don’t provide the right support, charge too much and aren’t keeping up with technology.
Why small businesses switch accountants
Top mistakes that are causing business owners to switch accountants include: rarely providing support (62pc), limited industry knowledge (57pc), making them feel like a low priority (55pc), being behind on technology (53pc), being unresponsive (52pc) and not providing enough value (44pc).
Nila Khan, business advice manager at industry body ICAEW, says: “Accountants being unresponsive is the major gripe of clients. All they want is a response, it can be as simple as that. It can be a shame to lose a client over something so simple as lack of communication. It’s frustrating because it can be so easily fixed.”
Another reason is that your old accountant either retires or
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Getting the most out of a working relationship with your accountant
by Owen Gough • • 0 Comments
Working with an accountant can be a daunting experience, especially if you don’t feel like numbers are your strong point. In this article, KashFlow advise on how you can get the most out of your working relationship with your accountant. Start on the right foot by identifying what you need from your accountant Accountants can
The post Getting the most out of a working relationship with your accountant appeared first on Small Business.
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Hiring an accountant: When and why you need one
by Ben Lobel • • 0 Comments
The strength of your business depends on its financial health. If your business is small you may be able to handle the job yourself, but the accounting responsibilities will grow bigger and more complex as your business develops. When running a business you want to focus as much time as possible on the products or
The post Hiring an accountant: When and why you need one appeared first on Small Business.
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Hiring an accountant: A small business guide
by Ben Lobel • • 0 Comments
When you’re running your own business, it’s inevitable that you’ll end up wearing a lot of different ‘hats’ and taking on a range of different roles within the business. Many businesses and entrepreneurs are operating on a limited budget, so it’s understandable that some may opt to try to do their accounts themselves. However, they
The post Hiring an accountant: A small business guide appeared first on Small Business.
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Four questions small business owners should ask before hiring an accountant
by Ben Lobel • • 0 Comments
An accountant can prove to be a valuable adviser for your business. However, because every business is different, it can be hard to know if and when it’s right to hire an accountant, especially if you are new to running your own business. Ask yourself these questions to give you some guidance. Should I talk
The post Four questions small business owners should ask before hiring an accountant appeared first on Small Business.
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Four ways to tell you’ve found the right accountant for your business
by Ben Lobel • • 0 Comments
With so many accountants and accountancy firms out there to choose from, how can you tell whether or not a particular accountant is right for your business? Finding the right accountant is about more than choosing someone you can work with on a personal level, you need to be able to trust that your accountant
The post Four ways to tell you’ve found the right accountant for your business appeared first on Small Business.
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Is it worth hiring an accountant as a small business?
by Ben Lobel • • 0 Comments
As a business owner, there are plenty of things demanding your time and money. If it’s not one thing, it’s the other. Choosing where to invest your often-limited resources is a never-ending problem. One such area is the accounts. Should you hire an accountant, or are you perfectly capable of doing them yourself? Is an
The post Is it worth hiring an accountant as a small business? by Ben Lobel appeared first on Small Business.