Fans of Ian Dury & The Blockheads will know that accountancy was not directly named among the band's Reasons to Be Cheerful. A recent study suggests that may have been an oversight.
The study, undertaken by Intuit QuickBooks and released to coincide with International Accounting Day, which:
- is actually a thing, and
- inexplicably did not feature in the song lyrics either,
found that 83% of small and medium-sized enterprises (SMEs) are turning to their accountant for support through uncertain times.
- 38% said their accountant had helped them significantly in dealing with inflation risks.
- Working with a qualified accountant saved SMEs an average of 59 working days per year and around GBP28,000 (about 7% of average turnover).
- SMEs without an accountant were 16% less likely to report strong financial health (52% versus 62% among those with accountants).
Why is this a reason to be cheerful? The survey found that among SMEs without an accountant, half of business owners took on the burden of financial administration themselves.
The other half relied on family and friends (20%) or someone else unqualified (24%) to manage their books. That can, via a tenuous lyrical link, become a reason to be less cheerful given the likely impact on owner stress levels.
"93% of UK SMEs surveyed said their accountant helped them feel less stressed."
SMEs without an accountant were also less confident in their ability to pay taxes correctly (35% less confident), pass financial audits (31%), and meet compliance checks (22%).
Not every accounting relationship reduces stress. Missed deadlines, staff turnover, IT issues, and lack of responsiveness are certainly no reason for cheer. But where teams are knowledgeable, stable, responsive, and backed by reliable technology, stress levels can move in the right direction.