The importance of good accountancy can never be overstated.

Having advised countless businesses over many years the ones who prosper are those who tend to keep a close eye on the purse strings.

Equally, we have from time to time needed to tell businesses that there are some serious issues with what they are spending. The successful ones are those that take it on board and make adjustments.

However, in the final analysis the successful businesses are simply the ones which make large profits, which are far bigger than their overheads.

As the saying goes turnover is vanity and profit is sanity.

This model though we feel could be used in many people’s personal finances, because it is frightening just how many people do not live within their means.

Accounting giant PWC predicted earlier this year that the average UK household will owe close to £10,000 in debts such as personal loans, credit cards and overdrafts by the end of 2016.

This is a new high in cash terms, and PWC’s report said that there was a lot of complacency by people with could lead to resurgence in bad debt.

Low interest rates have made borrowing relatively affordable in recent years, but unfortunately too many people borrow now for non-essential items.

There is also a shocking level of low financial literacy, which means many people are walking into debt where they really don’t know what they are letting themselves in for.

Our advice is simple. Start with working out your income and outgoings and then budget your life accordingly and focus on paying off the debt.

Getting rid of debt is a must if you are to get ahead and prosper and tackling it could save you many thousands in a lifetime, which may be the difference between being rich or poor in old age.

However, whilst our advice is easy to follow, applying it is another matter. We live in an era where there is always the next shiny new thing to tempt us.

Living by a budget requires will power and sometimes it isn’t fun. However, for the good of all of us the sooner as a national we all start to cut our cloth accordingly whether that’s in our business or personal life, the better we will be.

It’s hard work, but ultimately delaying gratification could be the difference between having your mortgage paid off earlier or working until you’re in your 70s.

We hope this subject continues to be taken seriously.