A comprehensive new study has established a significant correlation between professional accounting services and revenue growth for small and medium-sized businesses (SMBs) in the UK. This research indicates that engaging accountants can transform the financial landscape for businesses, enhancing profitability and operational efficiency.
Conducted by Intuit QuickBooks, in partnership with Dr. Chris Brauer of Goldsmiths, University of London, Symmetry Research, and the Association of Chartered Certified Accountants (ACCA), the findings underscore the invaluable role professional accountants play across various business sizes. Below, we outline the critical insights from this research and their implications for the SMB sector.
How Accountants Drive Revenue Growth for SMBs
The study reveals that businesses utilizing professional accounting services typically experience an average revenue increase of 11.5%. This enhancement differs by business size:
- Sole Traders: Average revenue increase of £6,176 per year (8.9% growth).
- Microbusinesses (1–9 employees): Average revenue increase of 7.9%.
- Small Enterprises (10–49 employees): Substantial 10.1% uplift, translating to £180,157 per year.
- Medium-sized Businesses (50–99 employees): Average increase of 12.8%.
- Larger SMBs (100–250 employees): 13.7% increase on average, amounting to £553,009 per year.
These statistics underscore the vital role accountants play in enhancing financial management, strategic planning, and tax compliance—cornerstones of sustainable revenue growth.
Enhanced Financial Confidence and Resource Access
Furthermore, the research highlights that 73.1% of SMBs reported improved financial reporting after partnering with professional accountants. This enhancement often facilitates access to crucial resources such as bank loans and government support, essential for business expansion.
Rob Burlison, Director of International Corporate Affairs at Intuit QuickBooks, emphasized that accountants assist businesses in increasing liquidity, minimizing costly errors, and optimizing financial performance, thus serving as invaluable partners in SMB growth.
Mental Health Advantages: Alleviating Stress and Promoting Well-being
Importantly, the study highlights mental health benefits stemming from professional accounting support. A notable 88.3% of SMB owners reported anxiety about potential financial missteps, with 38.3% indicating diminished confidence and 27.8% losing sleep due to financial worries. However, with accounting assistance:
- 80% of SMBs experience a significant reduction in stress, ranging from moderate to transformational.
- Time Savings: On average, SMBs save 9.1 hours per week using accounting services; sole traders benefit with 4.7 hours saved, while mid-sized businesses reclaim as much as 11.6 hours each week.
Dr. Chris Brauer emphasizes that these reductions in stress and time allow SMBs to concentrate more on growth, strategic decision-making, and long-term success.
Unlocking Economic Growth Potential
The study indicates that 78.6% of SMBs currently leverage accountants or bookkeepers, leaving 21.4% of businesses unengaged. If these businesses tapped into accounting services, they could significantly bolster the UK’s economic growth potential. Regional insights reveal disparities in the use of accounting services:
- North West England: 80% of SMBs have an accountant or bookkeeper.
- Northern Ireland: 93.3% utilize these services.
- South West England: Only 68.7% have accounting support.
In Wales, SMBs average 12.1 hours saved weekly through professional accounting services, while those in Scotland save an average of 9.2 hours. Such time savings enable business leaders to reallocate efforts toward other critical areas including product development, customer relations, and market expansion.
The Transformative Power of Accountants in SMB Success
In conclusion, this study reveals that professional accounting services transcend traditional support functions; they serve as catalysts for growth, enhanced financial confidence, and overall well-being among UK SMBs. As Glenn Collins from ACCA points out, accountants provide essential guidance in navigating challenges, minimizing financial risks, and enabling data-driven decision-making. This research not only underscores the economic impact of accountants on revenue growth but also highlights the broader benefits of improved mental health and time efficiencies, solidifying their fundamental role in the SMB economy.
As SMBs continue to shape the UK’s economic environment, harnessing professional accounting expertise will prove critical in unlocking substantial growth potential, mitigating risks, and enhancing both financial health and personal well-being for business owners nationwide.
