What happens when small businesses ignore accountants
What happens when small businesses ignore accountants
New report warns of widening support gap as SMBs face economic pressures alone
More than half of the UK’s small businesses say one more cost increase could force them to close, but nearly two-thirds are still not working with an external accountant or bookkeeper, new data reveals.
According to Built for Bigger Things, a nationwide study published by financial software provider Dext, 54% of small and medium-sized businesses (SMBs) believe another financial hit could shut them down. At the same time, 62% say they are navigating today’s economic environment without professional accountancy support.
The findings, based on a survey of 500 SMB leaders, point to what Dext CEO Sabby Gill calls a “dangerous mismatch” between risk and readiness.
“Too many small businesses are going it alone,” said Gill, “when they could be leaning on the strategic insight, data-driven decision-making and time-saving tech that external accountants now bring to the table. It’s not only a missed opportunity. It’s a growing risk.”
Manual admin, missed opportunities
The report highlights a persistent tech and support gap. Despite advances in automation and cloud tools across the accounting profession, 58% of small firms remain largely manual in their financial processes, with just 4% fully automated.
Over a quarter (27%) said they spend the equivalent of a full working week every month on financial admin. For many, this is time that could be spent growing the business: 37% said they spend more time on finance than on developing new opportunities.
Some small firms are managing without any expert input at all. 22% of respondents said they manage their finances entirely alone, while 10% rely on friends or family for support.
“There’s a clear call to action here,” said Gill. “SMBs need more than survival tactics. They need strategic partners who can help them plan, adapt and grow.”
Strategic blind spots
The report also paints a worrying picture of limited financial foresight. Just 29% of businesses conduct recession scenario modelling, and fewer than one in four (23%) regularly review their performance metrics.
With 53% of SMB leaders saying that forward planning is “virtually impossible” in the current climate, the findings underscore the growing need for external advisors—not only to manage compliance and admin, but to support decision-making and long-term strategy.
Gill added: “Accountants today are not just record-keepers, they’re business enablers. Their ability to deliver tech-driven insights, streamline processes and unlock growth has never been more important.”
Tech divide widens
The gap is not just in planning. It’s also in capability. According to recent industry data, 75% of UK accountancy firms are investing in cloud platforms and big data analytics. Over half are already using or planning to adopt AI in 2025.
This puts small firms—many of which are still manually processing invoices and ledgers—at risk of falling further behind.
The report calls for greater collaboration between accountants and SMBs, warning that the current level of disconnection could leave firms under-equipped to withstand continued inflation, tax complexity and economic volatility.
“The businesses that recognise this, and the accountants who step up, will be the ones built for bigger things,” Gill said.
This article is sourced from the following link:
https://www.accountancyage.com/2025/07/14/what-happens-when-small-businesses-ignore-accountants/
