Small businesses ‘favour accountants’

Small business owners are shunning their bank manager in favour of help from an accountant for advice on financial issues, new research shows.


Small business owners are shunning their bank manager in favour of help from an accountant for advice on financial issues, new research shows.

Small business owners are shunning their bank manager in favour of help from an accountant for advice on financial issues, new research shows.

A study from the Forum of Private Business (FPB) and Graydon UK, a credit agency, found small firms have more trust in their accountants than their bank managers.

Of the 400 small business owners who were questioned, 70 per cent said they sought advice from their accountant, while only 47 per cent went to their bank for help.

However, the study found advice was often not sought on a regular basis, as only 20 per cent of these businesspeople get advice quarterly or more frequently.

Phil Orford, chief executive of the FPB, says the results raise a larger question of the service banks are offering.

‘There is an increasing trend of established relationship managers being replaced by individuals in call centres, which leads to the loss of long-standing and profitable business banking relationships,’ he adds.

Last week, the FPB urged British banks to reduce their rates in line with the 1.5 percentage point cut made by the Bank of England.

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