56 per cent of business leaders rely on accountants to make finance decision. This percentage only goes to show how important accountants truly are in business. They do more than just compute your financial statements for you. Since they’re the ones studying your accounts periodically, it’s just but fitting to rely on the expertise of these accountants to ensure that the best decisions are always made for both small and big companies.
This article gives you all the data you need to know about how important accountants are in any business. That way, if you don’t have one yet as a member of your team, you can also go ahead and hire one.
What surveys and statistics say
MarketInvoice, the business finance company, reveals insights from a survey of businesses on their funding needs and wider concerns.
When it comes to making business funding decisions, over half (56 per cent) of business leaders reported that accountants are their most important external advisers when considering business finance options. They are twice as important to businesses than commercial finance brokers (23 per cent), while only 6 per cent would consider speaking to a bank directly.
This first data above is understandable, considering that it’s your accountants who know the most about your finances. After all, they’re also the ones making all of your reports. When they’ve been doing this regularly for your business, it means that they know you so well. That way, they can give the best insights, particularly those relating to your future, financial-wise. This statistic, therefore, is set to apply not just for accountants in London, but even across the globe, too.
Support and guidance from accountants will be critical over the next 6 months as businesses navigate an uncertain period with more than a third (38 per cent) anticipating a cash squeeze. The majority reported that they would turn to invoice finance (35 per cent) then bank overdrafts (30 per cent) for additional funding whilst 7 per cent would look to their business credit card.
Those businesses unable to remedy their cash squeeze acknowledge compromises will have to be made. The research shows that a third (34 per cent) would forfeit expansion plans, a further third (33 per cent) said they would forgo launching new products and a fifth (20 per cent) would reduce marketing spend.
Darvish Heshejin, Head of Partnerships at MarketInvoice, commented: “Accountants and commercial finance brokers are increasingly becoming the default go-to for companies seeking advice on business finance, especially where funding is required quickly.”
“It’s imperative that these professionals are aware of the wider funding opportunities available to provide the best, most comprehensive advice to their clients and find the solution that fits.”