According to AccountingWEB:
There are currently 52 UK based accountancy and bookkeeping companies posting growing losses and, despite the obvious freeze in the credit markets, increasing their debts, according to the latest Plimsoll Industry Analysis study.
These so-called ‘zombie businesses’ are carrying debts at an average of 63% of turnover, existing simply to service their out of control liabilities. Many are also using their suppliers to finance their growing losses, taking twice as long as to pay their bills as the industry average of 44 days.
Only 52? I’d be amazed of it is that low.
Dennis Howlett’s analysis of the situation is spot on. I’m so glad I quit the sausage factory of mainstream practice some time ago. I think I got the timing right. And like Dennis, i really can’t see myself going back now.
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It would be interesting to know the size of these 52 firms. The fact that it includes bookkeepers as well as accountants might suggest that they are all small. But like you I am surprised that the number is so low, and I think that larger firms will also be suffering, as they did last time.
There was a comment on your earlier item on Vantis from a former employee who pointed out that he had been trying to provide a professional service to clients. this is exactly where the firms fall down. They are very good at self promotion and marketing but rarely does the product represent value for money.
If a business cannot deliver what its customers require then it does not deserve to succeed.