With over 5.5 million SMEs operating in the UK today, an interesting new study shows that small firms that use accountants boost their revenues by an impressive 11.5% on average.
Not only that, but a study of over 4,000 SMBs commissioned by Intuit QuickBooks, found that hiring an accountant can produce other benefits, such as lowering stress levels and freeing up owners to concentrate on growing their businesses.
Firms of all sizes report impressive levels of revenue growth
According to the study:
Sole traders reported annual revenue growth of 8.9% (equivalent to an additional £6,176 per year.)
Small limited companies (with 1-9 employees) reported a 7.9% uplift (equivalent to £31,740 annually.)
Medium-sized firms (100-250 employees) reported the largest gains, with a 13.7% boost (over £553,000 per year).
Business owners have more free time and lower stress levels
Accounting tasks like tax preparation, financial reporting, and payroll management can consume countless hours each week.
Sole traders with an accountant save an average of 4.7 hours per week, while medium-sized businesses save up to 11.6 hours per week.
Across all 4,000 SMEs in the study, the time saved averages 9.1 hours per week – equivalent to an entire working day in some cases!
Stress reduction is another critical benefit. Financial anxiety is a common struggle for business owners – 27.8% of SME leaders lose sleep over business finances, and 38.3% lack confidence in their financial management.
The study highlights that 80% of SMBs report reduced stress and better well-being after engaging accountants, with professional support acting as a trusted safety net.
Glenn Collins, Head of Technical and Strategic Engagement at ACCA, emphasises this point:
We’re helping SMBs build financial confidence by guiding them through important decisions with the right data and insights.
21.4% of small firms don’t use an accountant – some interesting regional disparities
While 78.6% of SMBs across the UK currently use accounting services, a notable 21.4% do not.
This gap is particularly pronounced in certain regions – the South West result is particularly interesting.
Northern Ireland leads the way, with 93.3% of SMEs using accountants.
80% of smaller firms in North West use accountants.
The South West falls behind, where only 68.7% of SMBs engage an accountant.
Cost vs. benefit of hiring an accountant
One barrier to adopting accounting services is the perception of cost. However, the study reinforces what we believe at ByteStart – the relatively small cost is more than rewarded in benefits.
Sole traders pay an average of £72.85 per month for accounting services.
Small limited companies (1-9 employees) spend approximately £190.80 per month.
Considering the significant time savings, reduced penalties, and boosted revenue, this modest expense is outweighed by the benefits.
On average, SMBs incur £9,000 in tax penalties and £8,300 due to accounting errors over their lifetime—costs that accountants help mitigate.
Rob Burlison, Director of International Corporate Affairs at Intuit QuickBooks, highlights the broader implications:
Accountants empower SMBs to improve their cash position, avoid costly mistakes, and optimise performance.
Other benefits of hiring an accountant
At ByteStart, we always recommend hiring an accountant if you’re running a small business. For a relatively low cost – for sole traders and small limited companies – the benefits can be significant.
For us, knowing a professional is looking after your accounts is key. This minimises the chances of mistakes being made, deadlines being missed, and HMRC penalties being incurred.
The time savings are also significant, particularly if you use online accounting software.
A good accountant is often a small business owner’s key adviser. By taking over complex financial tasks, accountants help business owners reclaim their mental health and focus on what they do best – running their businesses!
Accountants can also act as strategic advisors, helping businesses scale and seize opportunities they might otherwise miss.
Read these guides to find out more about what an accountant can do for you, and how to choose the right firm for your needs.
Simply open a free business current account to qualify + 12 months free transactions. Read our Tide review. Open a Tide savings account at the same time and earn an excellent 4.07% AER (variable) on your spare funds.
