Managing a SME can be very challenging, but new research has shown that using an accountant can help small firms enjoy higher revenues.
The survey, which asked 4,000 small businesses about their use of professional accountancy services, concluded that those with expert help are achieving 11.5% more in revenue than those who don’t. Almost three-quarters reported that their accountant has strengthened their financial reporting, helping them secure additional funding. Additional benefits included more confidence and enhanced wellbeing.
The research identified how impactful engaging a professional accountant can be for different sizes of SMEs:
- Sole traders – 8.9% revenue increase
- Micro-businesses (employing one to nine employees) – 7.9% increase
- Enterprises (with 10-49 employees) – 10.1% increase
- Firms (50 employing 50-99 employees) – 12.8% increase
- Large SMEs (with 100-250 employees) – 13.7% increase
In real terms this means that to sole traders with accountants boost their revenue by, on average, over £6,000 a year with enterprises enjoying more than £180,000 extra.
Reducing business stress
For many SME owners the fear of making financial mistakes can weigh heavy. The research concluded that 88% of small business owners worry about errors with their accounts. The impact of this is significant; 28% say they even lose sleep because of business finance worries. For those using an accountant 80% feel a moderate, significant or transformational effect with reduced stress.
Saving time
In addition, using a professional accountant is saving business owners time too. Sole traders report a saving of 4.7 hours per week, with mid-sized businesses saving 11.6 hours each week.
Regional differences
There are differences when it comes to where SMEs are based, and whether they choose to engage an accountant or bookkeeper.
- North West – 80% have an accountant or bookkeeper;
- Northern Ireland – 93.3% work with an accountant or bookkeeper
- South West – only 68.7% of SMEs have chosen to engage an accountant or bookkeeper
As a specialist accountant for start-ups and SMEs we’re ready to help your business. To discuss any aspect of your business accounts please get in touch.