We asked thousands of small and medium businesses around the world about how their relationships with their accountants are evolving. Here’s what we learned about your challenges, and how accountants can help you grow.
The global pandemic has changed how people are spending, resulting in a cash crunch that has gripped many SMBs. In some countries, state intervention has supported businesses in keeping employees on payroll and delaying rent and tax, but cash is a priority.
It's understandable that many people still need help understanding the basics of accounting for small business. So we asked small and medium business owners which factors were the most important for growing their business over the next years:
SMB owners worldwide said healthier cashflow was the most important factor for future growth, except in France - where better access to tax relief was the most popular.
Our research also shows that while 85% of SMB owners want to grow their business in the future, less than half are looking to grow within the next 12 months. Entrepreneurs under 34 years old are four times more likely to have struggled with their finances over the last 12 months, but they still want to grow.
Accountants are seen as valuable for a range of services, but the data suggest that the majority still see them primarily as a source of value in traditional compliance areas, particularly tax. Given that cashflow is a major concern, it’s understandable that most businesses would be wary of taking on additional costs:
53% Of SMBs communicate with their accountant at least once a week. | 49% Of SMBs see their accountant as a business partner |
Most businesses communicate with their advisors often, which is reflected in the way nearly half of SMB owners see their accountant as a partner in their business. However, the relationship seems to be changing:
This shows a clear desire among younger SMB owners for a closer relationship with their accountant, especially among the youngest entrepreneurs who were 5X more likely to be in daily contact with their accountant than those aged 55+. This doesn’t only apply to accounting - they also show more interest in digital technology, financial support and regulatory education.
We asked SMBs who they would consult for support on the following services between:
Accountants were nearly always the largest individual selection. Financial planners were slightly more popular, by a margin of 1% – but a significant number of respondents were not sure who to approach for advice.
Particularly notable were:
A lack of clarity over where to turn for these services was concentrated mainly among SMB owners 45 and over. This suggests that SMBs aren’t maximising their relationships with their accountants, whose firms may be able to provide these services.
As the world returns to some version of normal, SMBs will be the driving force behind the economic growth that will be required, but you’ll need great financial advice - and it’s most likely going to come from a great accountant.
To ensure you make the most of the challenges and opportunities of the current commercial environment, you’ll need an accountant who can prioritize digital transformation and service delivery. There are two key reasons for this: