Unlocking Growth and Confidence: Why Accounting and Bookkeeping Services are Essential for UK SMBs

This is where accountants play a game-changing role, as revealed in the new report, which highlights the profound impact of accounting and bookkeeping services on SMB success.

Small and medium-sized businesses (SMBs) are the backbone of the UK economy. With 5.5 million SMBs contributing £2.4 trillion annually, these enterprises drive local job creation and innovation. 

Traditionally, accountants were seen as focusing on tax, compliance and bookkeeping tasks. However, today’s accountants are much more. They’re trusted advisors who not only manage financial tasks but also guide SMBs on growth strategies, business planning, and financial best practices.

In recent years, the relationship between SMBs and accountants has transformed. Accountants increasingly offer insights on cash flow management, budgeting, and forecasting, which are essential for SMBs’ resilience. Today, 71% of SMBs affirm that accounting support enhances cash flow management, enabling business leaders to make more informed decisions about the future.  

The latter are the cases that tend to make headlines. The news last year that a Hong Kong finance worker was tricked into sending $25m to fraudsters by a deepfake video call, broke the topic out of its niche and into the mainstream. The trouble is, most fraud is much less flashy. Retail Banker International reported in March that ID fraud may account for half of all bank-related fraud by 2025.  

Explaining why this is an issue, Rehaks said, “There are a couple of high-profile cases where someone steals $25m, and that’s nice, but typical cases that we hear about every day range from $5,000 to $50,000. If you lose that much money, it doesn’t make the news, but the real news is how normal this crime is. If you look at the rates where these crimes are investigated and they apprehend the perpetrators, they are essentially zero.

“Typically, this means someone walking away with the money, and not much money left for the victim. There are some exceptional cases where the gangs get prosecuted, but most of the crime is targeting different countries for political reasons, and convincing police to investigate a case that spans multiple countries and makes them do 60 different paperwork requests in five different languages is very hard. They are trying to combat the crimes of the 21st century using the means of the 19th.

Revenue growth is at the forefront of any SMB’s goals, and accounting services play an important role in helping businesses reach these targets. The report’s findings reveal that SMBs using professional accounting services saw revenue growth. By leveraging an accountant or bookkeeper’s expertise, SMBs can significantly improve the viability of their business.

Moreover, the research found that professional accounting support improves SMBs’ eligibility for loans and funding, increasing lender confidence, and providing businesses with the capital they need to grow.

Running a business involves many moving parts, and financial management can be a significant drain on a leader’s time and energy. According to the report, SMBs that outsource financial tasks to accountants and bookkeepers save up to nine hours per week. This time saving allows SMB leaders to focus on other crucial aspects of the business, such as customer service, product development, and employee wellbeing.

But time savings aren’t the only benefit. Working with a professional accountant also alleviates the stress of managing finances alone. Financial mistakes can be costly, and the complexity of tax regulations can feel overwhelming for SMBs. The report found that accounting services reduce business leader stress by providing clarity and confidence, with 70.88% of SMBs in the UK reporting reduced stress due to accounting support. 

While the benefits of accounting support are clear, not all SMBs are currently leveraging these services. Regionally, accounting and bookkeeper service uptake varies from 68.7% of SMBs in the South-West using accountants, to 93.3% in Northern Ireland. Regions with higher accountant use often report greater financial stability and business resilience, indicating a clear opportunity for economic growth if underserved areas increase access to financial expertise.

Intuit QuickBooks is committed to making accounting and bookkeeping services more accessible and offers a regional directory of QuickBooks-certified ProAdvisors to help SMBs find trusted professionals in their area. By making financial expertise more widely available, SMBs across the UK can benefit from the peace of mind that comes with knowing their affairs are in capable hands.  

The evolving role of accountants and bookkeepers means they are increasingly being drawn upon to help SMBs unlock new opportunities and build long-term resilience. Nearly 80% of SMB leaders reported that accounting support improved their financial literacy, empowering them to make smarter business decisions. Confidence in financial management also allows SMBs to explore new markets and tackle challenges, with 83% of surveyed businesses expressing optimism about facing future obstacles, such as HMRC’s Making Tax Digital (MTD) initiative.

The report reveals that professional accountants contribute to more than just profitability—they elevate SMB leaders' confidence and well-being, offering tailored services for certain industries. As Aaron Patrick, a chartered accountant at Boffix, states, “Niche expertise is becoming a game changer for accountants. By specialising in specific sectors, we can offer tailored advice that directly impacts a client’s success.” This bespoke guidance helps SMBs thrive, giving them a trusted partner in navigating complex, and sometimes niche, business landscapes.  

The QuickBooks Accounting for the SMB Economy Report 2024 concludes with a powerful message: SMBs that have yet to embrace professional accounting services may be leaving significant revenue on the table. Accountants help SMBs navigate financial challenges, build resilient business strategies, and uncover untapped growth opportunities. In a competitive market, this expertise can make all the difference.

As the UK’s economic landscape continues to evolve, the role of accountants in supporting SMBs will only grow in importance. By forming partnerships with trusted professionals, SMBs can shift from survival mode to growth mode, confident in their financial foundations. For those not yet working with an accountant, now is the time to consider the strategic advantage this support can bring to unlocking business potential.  

Main image: Amanda Tickel, Deloitte Global Leader - Tax & Legal Policy