I have heard three horror stories this week of business owners being told late in the day, the extent of their personal and business financial liabilities. One owed HMRC almost six figures – an eye watering amount which could be business critical. The other a personal liability that was due within the week and she didn’t have the means to pay it.
When questioned, they didn’t see or speak to their accountant more than once a year and cannot remember the last time they looked at their finance reports.
Now it is easy to say “A business owner should know!” but the reality is that they don’t know what they don’t know and often abdicate financial responsibility to their accountant.
Those that know me well will know that I have an issue with this and feel that some accountants should be stepping up and doing better. I will leave this debate for another Snippet, but i'm unsure I could get it into 60 seconds.