Small firms 'stay loyal' to accountants

News Article - 24 May 2012
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The majority of small business owners have remained loyal to the same accountant for between five and ten years, it has been claimed.

Reported by Accounting Web, research by the UK200 Group and Clydesdale Bank found that 60.5 per cent of firms have stayed with their auditor for this length of time.

However, 86.8 of small businesses change accountant due to inaccurate advice, it found.

A "lack of personal touch" was found to be the second-biggest reason behind switching, with 65.8 per cent wanting a more enhanced relationship with their accountant.

Six in ten companies complained of high fees and had cancelled their contracts in search of a lower charging auditor.

After deciding to change, 84.2 per cent used personal recommendations and 63.2 per cent went solely off the accountant's reputation.

Fabrice Desnos, chief executive of the UK division of credit insurer Euler Hermes, recently told the Financial Times that small firms are most at risk of corporate insolvency this year, due to over-reliance on credit and the state of the economy.

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