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Accountants, bookkeepers and business advisers play a crucial role in helping SME owners tackle mental health challenges, new research has found.
Accountants, business advisers a key ‘lifeline’ for SME owners
19 March 2025
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8 minute read
Research conducted by the IPA-Deakin SME Research Centre has found a direct link between the mental health of small business owners and their business advisers.
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The Institute of Public Accountants (IPA) said the study examined the capacity of business advisers to support the mental health of SME owners and found that strong client relationships led to reduced financial stress and improved wellbeing.
The study, 'Using Intermediaries to support the Mental Health of SME Owners', highlighted mental health initiatives tailored to SME owners remained scarce in Australia, despite SMEs making up 98 per cent of all Australian businesses and employing over 5.1 million people.
Professor Jenni Lightowlers, executive dean of business and law at Deakin University, said business advisers played a crucial role in identifying and addressing the mental health needs of small business owners, which was significant for personal wellbeing and economic resilience.
“It’s clear that small business owners deeply trust their accountants and bookkeepers, often sharing challenges beyond finance, including personal struggles and major life events. This positions them as a vital bridge between SME clients and mental health support,” she said.
“With small businesses driving economic growth and employing millions of Australians, the impact of poor mental health among SME owners extends far beyond the individual – it affects jobs, families, communities and the broader economy.”
It was noted in the study that SME owners often experienced higher levels of psychological distress than employees based on business-related challenges.
Challenges SME owners often tackled included chronic financial pressures, extended work hours, and the weight of decision making which could lead to stress, anxiety, depression and even suicide.
In Australia, 22 per cent of SME owners had been diagnosed with a mental health condition, 57 per cent reported stress levels beyond the normal range and 43 per cent business-related stress affected them frequently.
Based on the findings, it was suggested that business advisers and accountants be provided targeted training on relationship building and mental health first aid to help them identify financial and mental health distress in their clients to connect them with mental health services.
Andrew Conway, chief executive of the IPA, said the number one concern across accountant members was the mental health of their small business clients.
“This research has the potential to change – and even save – lives by raising awareness, reducing stigma, and equipping accountants with the tools and confidence to support their clients effectively,” Conway said.
“Ultimately, it’s a call to action for accountants to embrace their role in supporting the mental health of their small business owner clients – something many of our members are already doing – and helping them not just survive, but thrive.”
The IPA-Deakin SME Research Centre said it was the world’s first sector-wide study on how business advisors and accountants could support SME owners’ financial and mental health.
Conway said the study highlighted the power of trusted business advisors in helping SMEs tackle mental health challenges.
This was echoed by Greg Jennings, chief of engagement at Beyond Blue, who said integrating mental health into everyday business interactions was a practical and innovative way to support small business owners.
“Timely, targeted support doesn’t just help individuals – it strengthens business and communities,” Jennings said.
“Engaging accountants and other business advisors as mental health ‘first responders’ is a smart, scalable solution to tackling the growing mental health crisis among SME owners.”
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