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Accountants have fallen down the ranks when it comes to being the trusted adviser for small and medium businesses, a new survey has found.
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SMEs overlook accountants despite positive impact
26 September 2019
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The SME Growth Index conducted by banking analysts East & Partners, on behalf of national working capital funder Scottish Pacific, has found that only one in 20 business owners named their accountant as their most trusted business adviser.
The latest finding is down from 2017, when one in 10 nominated accountants as their key trusted adviser.
In contrast, the survey of more than 1,000 Australian SMEs with annual revenues of $1 million to $20 million found that business colleagues were the most trusted at 40.7 per cent, followed by trading partners or suppliers at 22.2 per cent.
Ahead of accountants, 8.6 per cent of SME owners trusted friends more, with 7 per cent nominating family members as their trusted adviser.
Scottish Pacific CEO Peter Langham said the results should be a call to action for the accounting profession, because accountants have so much to offer business owners when it comes to expert advice, strategic input and education about funding options.
“For the overall success of the small business sector, there needs to be an attitude shift among SMEs towards seeing accountants as a business investment rather than a cost point,” Mr Langham said.
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“I believe accountants need to become more proactive in helping set clients on the right path to success.
“I think it’s all about helping clients see beyond ‘number crunching’ to the extensive value an accountant can add to a small business.”
Despite the drop in trust from SME owners, the survey found that accountants still made the most positive business impact on businesses, with 82.9 per cent who nominated accountants said they had helped the business, compared to 68.8 per cent for family members, 58.8 per cent for business colleagues and 27.1 per cent for friends.
Mr Langham believes accountants can reinforce their authority as a trusted adviser by starting more conversations with their clients, using funding as a prime example of how accountants can exemplify their worth.
“People do business with people they relate to, so having conversations is a great place to start. I think it’s important for accountants to start a conversation with SMEs around how best to fund their businesses, as a worthwhile first step in developing these trusted relationships,” Mr Langham said.
“Many SMEs say they have had funding rejected, but the funding is there if they know where to look. SMEs need to understand the options and not just revert to self-funding business growth if they are rejected by the banks. This is where accountants and brokers can play a key role.”
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