Accounting heroes emerge as key to small business success

Small businesses are under pressure, and accountants are being called upon to provide a much-needed lifeline. According to new research from Intuit QuickBooks into the top priorities for small businesses over the next 12 months, 41% are using the new tax year to herald in radical changes for their business.

The findings, based on insights from small business owners and decision-makers, paint a sobering picture: almost all (99.6%) small businesses plan to change how they operate in the new tax year.  A further two in five respondents (40%) reveal that the current economic conditions have rendered additional support imperative for their survival.

Adaptation and transformation

Small businesses recognise the need to adapt and are preparing to implement changes to enhance their financial management and tax planning. The top five changes include:

• Adopting AI technology to streamline tax-related processes.
• Ensuring compliance with all tax laws and regulations while finding ways to minimise tax liabilities.
• Upgrading their financial management systems.
• Paying closer attention to potential tax rebates.
• Hiring an accountant or tax advisor to provide professional guidance and support.

A further 41% echoed the need for enhanced assistance to facilitate growth, underscoring the precarious position many small businesses find themselves in.

Over half (52%) of respondents indicated plans to invest in cutting-edge technology to boost their efficiency. However, AI is only one of their focuses. For small businesses with accountants, the appetite for AI adoption soars to 62%, underscoring the pivotal role these professionals play in guiding their clients toward transformative technologies and strategies.

Yet, despite the myriad concerns, only 66% currently retain the services of accountants or tax advisors. This discrepancy highlights a potential lifeline that could alleviate their burdens and allow accountants to step in and provide vital support.

Tech empowerment for accountant support

Nick Williams, UK Product Director at Intuit QuickBooks, notes the challenges many accountants face due to time constraints. “Accountants are the unsung heroes working behind the scenes to help strengthen the UK economy. But there’s only so many hours in the day, and having time to help their clients can be half the battle.

Fortunately, smart software that manages their entire client base in one place can enable accountants to streamline their work, so they can spend more time helping clients grow and seeing their practices thrive.”

The survey also shed light on cost-cutting measures, with 84% preparing to tighten their belts in response to economic pressures. With the general election looming, 79% of small businesses are considering postponing investments until a new government is in place due to uncertainty.

“Being a busy small business owner often means taking on multiple roles in the business, and accounting isn’t always a top priority in the day-to-day, often meaning the paperwork gets pushed into the ‘for later’ pile.

The new tax year presents a great opportunity for small business owners to start afresh with solutions that might better meet their needs and do the accounting role for them, taking away the pain points and allowing them to remember why they started the business in the first place,” explains Pauline Green, Head of Product Compliance & Programs at Intuit QuickBooks UK.

Intuit QuickBooks will be exhibiting at Accountex London at stands 784 & 1380 on the 15-16 May 2024 at ExCeL. 

You can register for a free ticket here. 

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