Some 36% of accountants and financial advisers have seen their cashflow worsen over the past 12 months, compared to 29% who say it has improved, according to a study by Premium Credit. One in three (33%) expect their cashflow to deteriorate over the next year, compared to 31% who expect it to improve.
Nine out of ten (91%) accountants and financial advisers surveyed say that a rise in clients struggling to pay their fees has contributed to their deteriorating cash flow, with one in three (34%) saying this is the main contributory factor.
Three in four (75%) accountants and financial advisers questioned say they are seeing a rise in the number of clients who are struggling to pay their fees, and 65% anticipate this trend will continue over the next year.
The fact that more clients are struggling to pay their advisers’ fees may help explain why 81% of accountants and financial advisers allow some clients to pay their fees monthly over an extended period of time. Furthermore, if there was a scheme from a professional company that enabled clients to do this, 82% of accountants and financial advisers surveyed say they would consider using this and recommending it to clients who are struggling to pay their fees.
Commenting on this, Premium Credit chief commercial officer, Jennie Hill, said: “Like many businesses, accountants and financial advisers are prone to cashflow issues if their clients are struggling to pay their fees, which our research suggests many are.
“However, our study shows that many accountants and financial advisers are being flexible in helping clients who are struggling to pay their fees by enabling them to spread payments over several months.
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By GlobalData“This helps explain why the number of accountants and financial advisers using our Fee Plan scheme has increased by 139% over the past three years.”