Small businesses turn to accountants

Date: 14th November 2008

The majority of small businesses would rather consult an accountant than a bank manager when it comes to financial matters.

That is according to the Forum for Private Business (FPB) and credit agency Graydon UK, which found that 70 per cent of small enterprises would rather speak to their accountant.

What's more, the investigation also discovered that a third of businesses are seeking more financial advice from accountants than they were last year.

Chief executive of the FPB, Phil Orford, said: "An issue that has not been reported as widely as lending restrictions is the declining level of service offered by the banks.

"Established relationship managers are being replaced by individuals in call centres, which leads to the loss of long-standing and profitable business banking relationships."

Considering these changes, he added, it was no surprise that business start-ups were placing their trust in accountants, rather than banks.

In others news, chancellor Alistair Darling recently announced that his pre-budget statement would take place on November 24th.