Business leaders rely on accountants to make finance decisions

The majority of business leaders rely on accountants to make finance decisions, a new survey has found

According to a survey of 3,874 managers, directors and C-level post holders by business finance company MarketInvoice, 56% said that accountants were their most important external advisers when considering business finance options.

Only 23% of them relied on commercial finance brokers and only 3% would consider speaking to a bank directly.

The survey found that 38% of business leaders expect a cash squeeze in the next six months. They said they would ask for support and guidance from accountants over this period, and would turn to invoice finance (35%), bank overdrafts (30%) for additional funding and business credit card s (7%).

In a bid to cut costs, business leaders said they would put expansion plans on hold (34%), delay launching new products (33%) and reduce marketing spend (20%).

Darvish Heshejin, head of partnerships at MarketInvoice, said, “Accountants and commercial finance brokers are increasingly becoming the default go-to for companies seeking advice on business finance, especially where funding is required quickly.

“It's imperative that these professionals are aware of the wider funding opportunities available to provide the best, most comprehensive advice to their clients and find the solution that fits.”

On Monday, the latest ICAEW Business Confidence Monitor warned that businesses are failing to invest at the level needed to boost economic growth despite the need to look ahead to a future post Brexit.

Job creation, staff development and R&D budgets are growing far more slowly than revenues, since more than 50% of businesses are working at below capacity.

source: www.economia.icaew.com