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Accountants need to look after their own businesses before taking care of their clients during the developing coronavirus crisis, or they could find themselves struggling down the line, says one accounting firm.
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Accountants urged to ‘look after themselves’
18 March 2020
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11 minute read
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As businesses grapple with the economic impact of the coronavirus and many turn to their accountants for advice, ChangeGPS and Change Accountants & Advisors founder Timothy Munro has urged advisers to be sensible about providing pro bono work.
Even though the sentiments are altruistic, Mr Munro believes accountants should refrain from offering free advice or services so they can keep their own businesses alive.
While tax planning will be vital for SME clients in this period of economic uncertainty, accountants need to look after themselves first to then help their clients, Mr Munro said.
Mr Munro said that, like the oxygen masks on planes, accountants need to “put [their] own on first” before helping everyone else.
“You’re going to be under so much pressure to give your services for free to your clients. Please charge for it, even if it’s a smaller amount… but you need to be in control of the situation,” Mr Munro said.
“Everyone will be saying ‘I can’t afford this’, but if you give everything away for free, your business grinds to a halt, then you’re not going to be there in six months’ time when your clients need you and have moved through this and are starting to move ahead.
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“Do this for yourself, look after yourself first, and you need to be in a position of strength to help your clients.”
Mr Munro advised that accountants should consider taking other precautions, such as trying to get an extra line of credit from the bank, as a further way to protect themselves.
“If you’ve got a line of credit or some equity against your home, get that sorted out,” Mr Munro said.
“We just don’t know how long this is going to take, but you need to keep your business afloat so you can help everybody else.”
Mr Munro also called for more unity among the profession, saying that accountants, bookkeepers and advisers need to work together during this “crisis time” by sharing ideas and supporting each other.
“This situation we’re facing is bigger than we’ve ever faced,” Mr Munro said.
“We need to work together.”
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