Small businesses are being warned about the effects of added accountancy costs brought about by new guidelines.
The Forum of Private Businesses (FPB) is urging small businesses to be aware of new guidelines issued by the Auditing Practice Board, which places restrictions on the business advice provided by accountants.
Accountants are currently able to dispense tax and general business advice to their clients, however, changes mean that businesses will have to employ two separate accounting firms to deal with audit and business advisory needs.
Such changes may well lead to many firms finding themselves unable to afford separate advice, with extra time and money spent on explaining their business to an unfamiliar accountant.
Nick Goulding, Chief Executive of the FPB, believes the changes will potentially cost small businesses thousands in accountancy fees and is just another example of over regulation.
He said, “Once again small businesses will have to suffer the consequences of regulators failing to ‘think small first’ and take into account the contribution made by the sector to the UK economy.
"These guidelines are all well and good when applied to FTSE 100 and other large organisations, yet for small businesses they will just add more costs and stifle a source of business advice favoured by many in the sector.”
John Brace, president of the Association of Chartered Certified Accountants, has also slammed the new measures.
He said, “The public interest in small businesses is to ensure that they are properly run. These proposals will make it harder for small businesses to get professional advice at a reasonable cost. Their voice should be heard.”
