Half of UK small businesses fear collapse yet most don’t employ accountants

London, July 2025: As economic pressure mounts and further tax hikes loom, 54% of UK small and medium-sized businesses (SMBs) say one more cost surge could force them to shut down. And yet, nearly two-thirds (62%) are not working with a professional accountant or bookkeeper to help them navigate these volatile conditions.

The findings come from Built for Bigger Things, a new study by Dext surveying 500 SMB leaders nationwide. The report highlights a dangerous mismatch between the scale of financial pressure SMBs are under and the level of expert support they’re using, at a time when economic uncertainty, tax complexity and internal inefficiencies are threatening business survival.

“There’s a clear call to action here,” said Sabby Gill, CEO of Dext. “Too many small businesses are going it alone, when they could be leaning on the strategic insight, data-driven decision-making and time-saving tech that accountants now bring to the table. It’s not only a missed opportunity. It’s a growing risk.”

Tech-savvy accountants, tech-starved SMBs

While most SMBs are still drowning in manual financial admin, the accountancy profession has rapidly evolved. According to recent reports*, 75% of UK accounting firms are investing in cloud platforms, automation and big data analytics, with over 50% either using or planning to adopt AI this year.

This growing tech divide is compounding the crisis. Despite being in the AI era, 58% of SMBs still rely heavily on manual financial processes, and only 4% are fully automated. Over a quarter (27%) spend the equivalent of a full working week each month on financial admin. More than one in five (22%) manage finances solo, while 10% even rely on friends or family for support.

“SMBs need more than survival tactics. They need strategic partners who can help them plan, adapt and grow,” said Gill. “And today’s accountants are ready for that role. They’ve invested in innovation, embraced automation and built the tools that SMBs desperately need. This is a moment to bridge the gap.”

From crisis to opportunity

The report paints a sobering picture across the board:

• 46% of SMBs have experienced cashflow issues or used emergency funding in the last 12 months
• 48% believe they’d be better leaders without the burden of financial admin
• 37% spend more time on finance than growing their business
• 35% say they’ve missed business opportunities due to time lost on finance tasks

Despite growing external pressure, the research shows that most small businesses are not accessing the professional financial support that could improve resilience and planning. With just 38% of SMBs using an external accountant or bookkeeper, a majority are navigating this economic storm without expert guidance.

And this is reflected in the lack of strategic planning. Over half (53%) of SMB leaders say planning is “virtually impossible” in the current climate, while only 29% conduct recession scenario modelling and just 23% review performance regularly. This lack of forward-looking financial strategy leaves businesses vulnerable, and underscores the untapped role accountants can play as trusted advisors as well as service providers.

“Accountants today are not just record-keepers, they’re business enablers,” Gill added. “As this crisis unfolds, their ability to deliver smart new tech-driven insights, streamline processes and unlock long-term growth potential has never been more critical. The businesses that recognise this, and the accountants who step up, will be the ones built for bigger things.”

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NOTES TO EDITORS

*HSBC & Accountancy Age - UK Accountancy Sector Outlook Report 2024-2025

About the data

The Built for Bigger Things quantitative research study was commissioned by Dext and conducted by Censuswide. It surveyed 500 senior decision-makers at UK small and medium-sized businesses (1-249 employees) across a range of industries. Fieldwork took place over a two-week period in May 2025.

About Dext

Dext, part of the IRIS Software Group, is the world’s leading provider of AI-powered bookkeeping automation. Since 2010, Dext has empowered accountants, bookkeepers, and businesses to thrive by eliminating the manual work that slows them down. Its advanced AI, trained on more than 1 billion receipts and invoices with 99.5% accuracy, streamlines the capture, coding, publishing, and reconciliation of financial data, giving professionals more time to add value and grow.

Trusted by over 12,000 accounting and bookkeeping firms and 700,000 businesses worldwide, Dext integrates seamlessly with all major accounting software and connects to more than 11,500 banks, suppliers, and marketplaces. As part of IRIS Software Group since 2024, Dext continues to innovate with its clients to deliver a more seamless, end-to-end accountancy workflow that enables smarter, more timely financial decisions.

For more information, visit www.dext.com