A first-of-its kind study has been published on the correlation between the use of accountancy services and revenue growth among sole traders, micro, small and medium businesses respectively.
The research, by Intuit QuickBooks in conjunction with Dr Chris Brauer of Goldsmiths, University of London, Symmetry Research and the Association of Chartered Certified Accountants (ACCA), shows that SMEs with access to the expertise of accounting professionals are achieving an 11.5% increase in revenue compared with those that don’t.
For businesses with 100-250 employees, that’s a £553,009 increase on average per year, and for enterprises with 10-49 employees, they see a £180,157 increase on average per year. For Sole Traders, it is a £6,176 increase on average per year.
Accountants play a critical role in the SME economy, driving financial performance by offering strategic planning, tax compliance, and financial management. For sole traders, professional accounting services deliver a 8.9% revenue increase on average, and for firms with 1-9 employees a 7.9% increase. Looking at enterprises with 10-49 employees, an uplift of 10.1% is achieved on average, with firms with 50-99 employees, these services are delivering a 12.8% revenue boost. Looking at larger SMEs (100-250 employees), professional accounting services offer a 13.7% increase on average.
Of the 4,000 SMEs surveyed, 73.1% said that using professional accounting services has strengthened their financial reporting, and this alone has offered increasing opportunities to get bank loans or government support.
Dr Chris Brauer, of Goldsmiths, University of London said “This comprehensive study, based on data from 4,000 SMBs across the UK, demonstrates the significant impact of using accounting services on business performance. Utilising a rigorous methodology that mirrors established research models, we examined how accountants affect revenue growth, time savings, and stress reduction for business owners. The results are clear: SMBs using internal or external accountants see an average revenue increase of 11.5%, with significant improvements in financial management and confidence. By controlling for firm size and age, the research underscores how essential accounting professionals are in driving growth, improving decision-making, and supporting long-term success for SMBs.”
Rob Burlison, Director of International Corporate Affairs at Intuit Quickbooks said: “This research, developed in partnership with leading academics, reinforces the transformational role accountants and bookkeepers play in growing our SMB community. They increase the viability and liquidity of the businesses they serve by providing expert financial insight and guidance, empowering SMBs to improve their cash position, avoid costly mistakes, and optimise performance.”
In addition, Glenn Collins, Head of Technical and Strategic Engagement, ACCA commented: “As accountants, we’re helping SMBs build financial confidence by guiding them through important decisions with the right data and insights. We’re trusted partners who help businesses navigate challenges, reduce risks, and ultimately, improve their financial outlook. Developed in collaboration with leading academics, this research highlights the transformative impact that accountants and bookkeepers have in driving growth and increasing confidence within the SMB community.”
Mitigate risk to drive future success
The study found that 88.3% of SMEs are concerned about making accounting mistakes, with 27.9% being very concerned that they will make mistakes in financial reporting, payroll, and tax preparation.
The mental health of SME owners is also notably impacted by the stress of financial management. With 88.3% of those surveyed being apprehensive about making accounting errors, it’s no surprise SMEs suffer from a lack of confidence (38.3%), and a loss of sleep (27.8%) when it comes to their business finances.
On a more positive note, 80% of SMEs report either a moderate, significant or transformational effect on their stress reduction when using an accounting professional. Not only does using professional accounting services increase confidence, it also enables SMEs to save essential time. On average, sole traders using professional accounting services save 4.7 hours per week, with mid-sized businesses saving 11.6 hours per week. Across the board, an average of 9.1 hours are saved per week by using accounting services.
Untapped Economic Growth opportunities
UK SMBs are powerful for driving economic growth, and with support from accounting and bookkeeping professionals, there is an untapped opportunity for those businesses not drawing on this expertise to drive increased revenue across the country.
According to the study, gaps between businesses using accountants and bookkeepers (78.6%) and those who aren’t (21.4%) is limiting the true economic potential of the SMB economy. If the 21.4% of SMBs not using accountants did so, they have the potential to create a substantial uplift to the economy.
There are also differences across regions:
- % of SMBs in the North West of England have an accountant or bookkeeper
- In Northern Ireland, 93.3% of SMBs have an accountant or bookkeeper
- In the South West only 68.7% of SMBs have an accountant or bookkeeper.
The use of professional accounting services gives businesses time back, allowing leaders to focus more on their strengths, and work towards their enterprise in other ways. Across Wales, SMBs save an average of 12.1 hours per week and in Scotland businesses save 9.2 hours per week by using accountancy services.
Accountancy services also improve well-being by reducing financial stress. Within both Greater London and Northern Ireland, SMBs believe that using a professional accounting service can reduce financial stress by over 75%.
