Sound advic
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Just like haulage, the financial world has its cowboys who can cost the unsuspecting dearly. To combat these sharks the top accountancy body is piloting free surgeries for small businesses.
The humblest haulier needs to meet specific standards to qualify for an 0licence and set up in business legally. Yet to be an accountant or professional advisor, you need only rent an office, have some letterhead printed and brass plate fixed to the wall outside and you're in business. No messing, no qualifications and no illegalities.
The situation is more worrying if you consider the number of small businesses which are most susceptible to cheap and poor advice. Figures taken from a joint Confederation of British Industry and National Institute for Economic Research report indicate that the number of small businesses in the UK is growing by a healthy 10% and their number is this year expected to reach a total that is well over 2.7 million.
At the same time, because the economy is picking up, 13% fewer businesses have failed. Small businesses are growing so fast that they are recruiting staff at their fastest rate for six years. It is essential that this sector of British business needs good accounting and management advice.
Recognised
But where to turn to? There are three main recognised accountancy bodies in the UK— The Chartered Association of Certified Accountants (ACCA), The Chartered Institute of Management Accountants (CIMA) and the Institute of Chartered Accountants in England and Wales and its affiliates (ICAEW)—but what do they offer? The answer is very little unless you're dealing with the ACCA.
To rid the British business world of sharklike "professional" advisors, the ACCA has just gone it alone by introducing a pilot advice programme for owners of small businesses, which, if all goes to plan, could be available nationally within the next year or so.
Starting with a sponsored Small Business Surgery in North Harrow, Middlesex, the ACCA is offering local businesses the opportunity to get free advice in the form of a half an hour of consultancy The information and help available is wide and can cover matters as diverse as sources of finance, cashflow handling and the new personal taxation regime presently being introduced, termed by Inland Revenue as Self Assessment.
After the first 30 minutes, a second half hour is available if necessary. Thereafter, it's up to the individual to make their own arrangements either with the accountant they've been talking to or elsewhere.
The reason behind the programme is simple, says Lutfi Talib, president of the Harrow District Society of the ACCA. "While many small business consultants are legitimate, others offer a cheaper service by cutting corners. Those in the latter category can be very tempting to small businesses, operating under tight budgets. However, this could prove to be a fatal false economy if the consultant is not up to the task."
Unscrupulous
Lutfi illustrates this by citing cases where unscrupulous, unqualified individuals have been charging non-refundable administration fees with the vague promise of raised finance. This sort of advice might seem tempting at the time especially if you're in a tight spot. There have even been cases where small businesses /have been charged several hundred pounds by these "advisors" for reports on their eligibility for Government
and EC grants.
So if you are looking for some good, solid, professional help, remember these points: U Use an advisor who is a member of a relevant professional body, and look for qualifications and certificates as proof. CI Be wary of any advisors who cold call. U Find out who else the advisor works for and where ever possible, seek out references, either from other businesses in your area or in haulage, or
from the local Training and Enterprise Council.
Do not relinquish any direct control over the finances of your business to an outside party. ZI Look to see how much interest any prospective advisor shows in your business. Find out if they have any experience in haulage.
Ej Ensure that you have a written contract that spells out exactly what is expected and what you must pay for. Ask about billing terms—is it monthly, quarterly or annually? Will the advisor offer any help in minimising your bills?
Find out if the professional body that regulates the individual you are in discussions with has any free guides and advice booklets that you can have.
With all of this information in mind, remember that advisors, if you choose badly, can lead you along a path that may destroy all that you have worked for. But a good advisor will be worth their weight in gold. Happy hunting.
17 by Adam Bernstein • The Instibite of Chartered Accountants in England and Wales can be telephoned on 0171-920 8100. Complaints about members to (01908) 248100.
• The Chartered Institute of Management Accountants can be called on 0171-637 2311. Complaints to the same number.
• If you are based near North Harrow and are interested in a consultation, call the booking line on 0171-396 5770. Consultations are held every Friday afternoon . between 12.00 and 15.00hrs at
the Harrow Civic Centre.
For more detailed information on the national aim IA the programme
call the ACCA on 0171-242 6 8 5 5 . Complaints to be same number.