Accountants' jargon 'confusing clients'
Accountants are confusing some of their clients with jargon, research suggests.
One in five people who use the services of an accountant describe having difficulty understanding the language they use, according to a survey.
Pulse Accounting said that out of 175 respondents drawn from across the UK population, over a quarter (26%) said they were either still confused – or even more confused – after their accountant had answered a question they asked.
To help financial advisers overcome potential client misunderstandings, the accounting services provider has compiled a Contractor Jargon-buster, which details the top 10 terms that can baffle contractors, especially when they are setting up as a limited company for the first time.
Among the highlighted terms that could prove a stumbling block to some are dividends, allowable expenses, Flat Rate Scheme, retained profit/availability and corporate tax.
Chris Futcher, Chief Executive of Pulse Accounting, said: “It’s a real worry that so many people have such trouble understanding what their accountants are talking to them about. This is important information that can have a huge effect on someone’s life if they don’t understand it properly.
"The consequences of filing with Companies House late, or of missing a deadline with HMRC, can be significant. And these problems can be avoided by clear communication with your accountant.
“Contractors and freelancers have enough to do without getting confused by accountants talking in jargon. It’s really important to find an accountant who can explain things clearly without getting bogged down or hiding behind a whole lot of financial gobbledygook.”
To view and download the Contractor Jargon-buster visit the Pulse Accounting website.
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