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Suburban law firms affected by cash flow

Suburban law firms affected by cash flow

The main barriers to achieving business goals for suburban legal and accounting firms are the shortages of cash flow and working capital, a survey by Deloitte has revealed.The survey found that…

The main barriers to achieving business goals for suburban legal and accounting firms are the shortages of cash flow and working capital, a survey by Deloitte has revealed.

The survey found that almost 94 per cent of respondents have consulted with an external advisor in the six months to June.

Deloitte partner Simon Cathro said the global financial crisis was driving suburban legal and accounting firms and their clients to seek specialist advice earlier in the cycle of financial difficulty, but there had been a slight drop in insolvency enquiries over the last six months.

"All suburban accounting and legal firms have clients in financial difficulty in the three months to June, compared with 80 per cent of respondents in the three months to December. The survey shows that positive sentiment towards the next 12 months improved by eight percent, up from almost 59 per cent in December '08 to just over 67 per cent in June '09," he said.

"We believe this shift in optimism is the result of solid demand for clients focussed on managing out of volatile times," he said.

While concerns about consumer sentiment had dropped, government policies were noted as causing anxiety for firms.

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