How Many Businesses Use an Accountant?
Are you considering hiring an accountant for your business? You’re probably wondering how
many other companies use one. While it’s not a good idea to follow the crowd
all the time, it’s useful to know how everyone else stays on top of their
finances. After all, you don’t want to be the only one struggling, only to find
out that everyone else is doing things differently.
In this post, we’ll
look at how many businesses use an accountant – and why their accountant is so
important to them.
ICAEW study – looking
at the numbers
In 2014, the Institute of Chartered Accountants in England and Wales (ICAEW) conducted a study into small and medium businesses. Despite big business making the headlines, they explain that businesses with less than 250 employees make up 99.9% of registered companies.
findings? Three out of four businesses had used an accountant over the past
year. For those hoping to grow, the figure rose to four out of five.
Why do they use them?
Amongst those businesses, there were six accounting services that came
out most popular:
preparation – 65%
services – 62%
advice – 25%
statements – 14%
services, however, businesses use accountants because it makes their company
better. 72% of respondents agreed that a good relationship with an accountant
added value to their company.
On top of that, almost half of all businesses (48%) said their
accountant is the most trusted business adviser for their company. That figure
is even higher for small businesses (58%) and micro businesses (54%), with more
sole traders trusting themselves as their own business adviser.
notably, the number of businesses trusting accountants as their business
adviser is significantly higher than those who trust business networks, bank
advisers, partners and even lawyers.
Services by size
also interesting is how business’s accounting needs change as they grow. While
just less than 70% of sole traders had used an accountant in the last 12
months, the figure was almost 90% for micro businesses and small businesses,
and a healthy 85% for medium businesses. The number of businesses using
accountants doesn’t change much by size, but there is some variation in the
services they use.
preparation and bookkeeping are in high demand for microbusinesses, dropping
off slightly as they grow large enough to take them in-house. As businesses get
larger, they move towards tax services, assurance review, business advice and
pension services. Having a trusted accountant makes this growth easier, as
businesses can simply change the services they obtain from their accountant,
without the need to switch providers.
If you’re looking for an accountant you can trust throughout your
company’s journey and growth, UWM can help. We are a team of expert accountants in Leeds, specialising in everything from bookkeeping and account preparation to
business planning and auto enrolment.