Going Concern

I,m interested to know what you all think about the going concern of your clients.

If you see that they are in trouble, robbing Peter to pay Paul etc etc.

Do you tell them its maybe time to call it a day, or do you just carry on with and say nothing ????

I,m not in this situation but have seen it in the past and wondered what you guys and gals would do.

Comments

  • PGM
    PGM Registered Posts: 1,954
    You could enquire about business plans for the coming year, or how the order books are looking.

    Otherwise you would be looking only at past events, even if they are a very strong indicator of whats to come.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    You should be careful as you are not qualified or licensed to give financial advice. I would suggest a financial adviser to them.
  • groundy
    groundy Registered Posts: 495
    T.C. wrote: »
    You should be careful as you are not qualified or licensed to give financial advice. I would suggest a financial adviser to them.

    I don't think its financial advice, advising a client as to whether their business is viable or not.

    I have sat down on many occasions over the last twelve months with clients to discuss if their business is viable and what their intentions are for the future months. I have had clients that I have voiced concerns with about the amount of money they are borrowing or inserting into the business from personal funds. Alternatively I have clients that have no option but to try and continue whether it be due to lease commitments or being unable to walk away.

    Most of my clients of the last couple of years have become very streamlined and keep their overheads to the minimum required, which makes it difficult to offer any constructive advice other than to look at ways of increasing turnover without damaging GP.
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    If I spot something, I'll bring it to their attention. Most of them are aware of it already - or if they are going to the wall will not have been in touch for months despite my best efforts.

    Nothing wrong with giving general business advice - that's what we are here for, as long as we don't overstep our knowledge.
  • villapb
    villapb Registered Posts: 357
    Cheers groundy, it seems that voicing concern is the way, its shame to see sincere business owners lose so much.

    It can be devasting for some..........just like to think i could help in some way but have seen some past that stage of help, i wondered how they got so deep in to trouble...........i call it red flags and were the flags noticed or ignored. Some business owners spend all their time fire fighting.........and it exhausts them.
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