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Research shows 'Making Tax Digital' was top reason small businesses sought accountancy help

Small and medium-sized businesses (SMEs) are often described as the lifeblood of the UK, accounting for 99.9 per cent of all businesses across the UK.

Now recent research by accounting, financial, HR and payroll technology company Sage, has found that nearly 40% of business owners admitted that Making Tax Digital was the main driver for them seeking accountancy services.

The 'Count on Accountants' research also highlighted the fact that far from being undervalued, 91% of small businesses rated accountants as an important part of their business' operation with half (49%) of SMBs turning to their accountant for strategic business guidance.

According to the research, accountants are the UK's “number one” go-to business service for start-ups, with 34% citing their importance.

Covid is another reason why businesses have sought professional accountancy support, with 28% opting for help and a further fifth needing support with Brexit-related issues. During the pandemic, over half reported increasing their reliance on accountants.

The 'Count on Accountants' research also suggests 91% of small businesses rate accountants as an “important part of their business' operation”, while half (49%) of SMEs go to their accountant for strategic business guidance. It also emerged that 39 percent say their accountant keeps them in line with local tax filings - with 47 percent relying on theirs to ensure they pay the right amount of tax. Read more here https://bit.ly/3vh1evD

And according to OnePoll data, commissioned by accounting platform Dext, a quarter of the UK's SME owners struggle to keep on top of their financial admin – with one in six admitting they don't know how much money they have in their bank account.

The study of 500 business owners found 26 percent struggle with financial admin, and 38 percent cite rising costs as their biggest challenge.

More than a third would like to employ the services of an accountant or bookkeeper, with 41 percent feeling they are stretched too thinly by other business demands. Read more here https://bit.ly/3v9EygJ

As a result, 61 percent of those polled wish they had more time to spend discussing their business goals with a professional.

Fortunately, despite the lack of planning, 77 percent of respondents describe their business as being "reasonably healthy" - with 27 percent of these claiming theirs is "very healthy".

Respondents also admit they are sometimes their own worst enemy, as six in ten feel "too proud" to ask for help with their business.

But 84 percent admit they rely on the staff they employ to keep the business running effectively, according to the OnePoll.com data.

How can Giltinan and Kennedy help?

We work in partnership with you, recommending the best course of action for you and your business to take to help to bring financial stability and growth.

Our clients include many businesses, charities and individuals across Horsham, West Sussex and beyond. Please feel free to get in contact with us for an informal chat about your business finances on 01403 337490 or learn more at https://www.giltinan-kennedy.co.uk/services/tax-advisers