A recent article in Accountancy Age shows that even the most qualified of professionals can get into financial trouble.
I have to say that my experience over the years has shown that whilst most "professionals" (e.g. accountants, solicitors, architects etc) manage their personal and business finances exceptionally well, when it goes wrong, it goes wrong in spectactular style!!
I think this is mainly down to the fact that these types of individuals are usually high earners and therefore also have a high level of financial outgoings. When the income drops (sometimes even if it is only slightly) then the high level of outgoings creates fiancial problems in a very short space of time.
"Accountant, heal thyself" is a very rare phrase to hear as you would think that this type of individual would be able to deal with 'the numbers' very well. However, many accountants (but by no means all of them) are so number-focussed that practical and commercial acumen doesn't always come into play. Same with solicitors and architects: they get so caught up in doing the job for their client (no bad thing) that they lose sight of the commercial reality. Whilst the client will get a gold standard service, it may only be able to pay coppers.
Having advised an accountantcy practice, a law practice and an architects practice on insolvency matters in the last 12 months, all of these things have rung true.
However, don't be afraid of seeking advice from your accountant, lawyer etc - they will undoubtedly be able to help you. All I will say to the professional is that they need to ensure they run their practice as a business just as much as anyone else who runs a business. If you do start to experience financial difficulties, seek help from an insolvency practitioner sooner rather than later
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