Are accountants failing small businesses

Having launched M&M financial management – my accountancy business with a what I thought was a difference, I am finding I am having the same conversation with a lot of clients. Small owner managed businesses saying they need some help, not just in the filling in of HMRC forms but real help understanding the numbers in their businesses.

So I am right that what I am doing is different but to be honest it has started making me really angry. The lack of support the accountants are giving businesses.

I have come to the conclusion that some accountants are failing small businesses

Are Accountants Failing Small Owner-Managed Businesses?

Accountants have long been considered the backbone of financial management for businesses, especially small owner-managed businesses. These businesses rely on accountants not only for basic bookkeeping and tax compliance but also for strategic advice that can help them grow and navigate challenging financial landscapes. But with increasing dissatisfaction among small business owners, this question definitely exists but why?

The Changing Role of Accountants

In the past, accountants were largely seen as number crunchers—professionals who managed the books, ensured compliance with tax regulations, and delivered financial reports. However, as the business world evolves, so too has the role of accountants. Modern-day accountants are expected to go beyond traditional accounting tasks to offer advisory services that help businesses with financial planning, risk management, and strategic growth. When I trained I never ever dreamed I would have my own accountancy business but working in industry and seeing the value of insight and timely financial support I know there is a massive need in the market for accountants to offer a helping hand.

Yet, despite these shifting expectations, many small business owners feel that their accountants are falling short of these expanded roles. Why?

Key Areas Where Accountants May Be Falling Short

1. Lack of Proactive Financial Advice

One of the biggest complaints from SOMB owners is that their accountants tend to focus more on compliance and less on offering proactive financial advice. Many accountants excel at ensuring businesses meet tax deadlines, but that’s often the extent of their involvement. Small business owners frequently need help managing cash flow, securing loans, or expanding operations. If accountants aren’t proactively offering advice on these areas, they’re missing an opportunity to provide real value.

2. Failure to Embrace Technology

The accounting profession is undergoing a technological transformation with cloud-based accounting software, AI, and automation tools making bookkeeping and financial reporting more efficient. However, some accountants are slow to adopt these technologies, leaving small businesses burdened with manual, time-consuming tasks. This not only impacts efficiency but can also limit a business owner’s ability to access real-time financial data, hindering informed decision-making.

3. High Fees with Limited Value

For many small businesses, paying for accounting services is one of the largest expenses outside of labor and inventory. Unfortunately, some business owners feel that the services they receive don’t justify the cost. If an accountant is only delivering year-end financial statements and ensuring compliance, but not offering strategic insight or support, business owners may question the value they are getting for their money.

4. Poor Communication and Accessibility

Small business owners are often deeply involved in the day-to-day operations of their businesses, leaving little time for financial oversight. They rely on their accountants to not only keep them informed but also to be available for advice when needed. Yet, a common complaint is that accountants can be hard to reach, don’t explain financial matters in simple terms, or fail to communicate regularly. This can leave owners feeling disconnected from their financial data and unsure about their business’s performance.

5. Focus on Historical Data

Many accountants focus heavily on historical data—preparing reports that summarize what happened over the last quarter or year. While this is useful for tax filings, small businesses need forward-looking insights to make decisions that affect their future. Accountants who are stuck in the past, rather than offering projections, forecasts, and scenario planning, may not be providing the full scope of service that small businesses need.

What Small Owner-Managed Businesses Really Need

1. Holistic Financial Advisory Services

Small businesses often need more than just compliance. They need strategic financial planning, advice on how to manage cash flow, guidance on capital expenditures, and support with navigating the complex landscape of taxes, loans, and regulations. Accountants who can take a more advisory approach can offer immense value, helping businesses not only survive but thrive. The types of businesses that I have been talking to are not experts in numbers – they are tradesmen that have been successful in their own field. So lets help them be good at what they are good at.

2. Access to Real-Time Financial Data

With the rise of digital accounting platforms like QuickBooks, Xero, and others, there’s no reason why small businesses shouldn’t have access to real-time financial data. Accountants who leverage these tools can offer their clients more accurate and up-to-date insights, empowering them to make informed decisions quickly.

3. One size doesn’t fit all. Personalised approach is needed

Not every small business has the same needs. Accountants should tailor their services based on the unique challenges and goals of each business. Whether it’s growth planning, budgeting, or tax minimization strategies, providing customized support can create deeper client relationships and deliver greater value.

This is the most important one for me I think

4. Improved Communication and Education

Effective communication is key to any successful relationship, and this is particularly true between accountants and small business owners. Accountants should take the time to explain financial reports, offer training on how to use accounting software, and ensure that business owners understand the financial health of their business.

Not all accountants are failing small owner-managed businesses, but there is room for improvement. As businesses evolve and the financial landscape becomes more complex, accountants must step up and provide more proactive, tech-savvy, and value-driven services. The traditional role of accountants has expanded, and those who fail to adapt may indeed be falling short of the expectations and needs of today’s small business owners.

For small business owners, the key is finding an accountant who understands the broader role they can play in a company’s success. And for accountants, it’s about recognizing the opportunity to offer more than just compliance services—becoming strategic partners in helping businesses grow and prosper.

If you need any help or advice please reach out

Have a great week

Laura and Nicola x