UK small firms trust their accountants more than their bank managers according to a new survey by risk management company Graydon UK.
The study quizzed 400 businesses on their financial practices and preferences when seeking financial advice. 70% of respondents choose to go to their accountant for financial advice whereas only 47% look to their bank manager.
Also revealed was the fact that only 20% of the businesses sought financial advice quarterly or more frequently and then, "only when necessary". Graydon suggests that this dragging of feet and apparent lack of planning could spell trouble for many of the UK"s small firms, whose delays in seeking financial advice may be too little, too late.
Martin Williams, Managing Director of Graydon UK commented: "The traditional "grey-haired pillar of society" stereotype of the bank manager as a trusted and respected source of financial advice has faded into the past. But as the economy hits upon hard times and banks become increasingly nervous about credit limits, SMEs need now, more than ever, to maintain a close dialogue with their bank managers.
"We certainly do not want a repeat of the last recession, when the relationship between banks and small businesses broke down completely."
