Accountancy Magazine
Accountants are the best source of advice
Survey shows growth opportunities for firms
26 February 2010
New research shows that accountants are now seen as the most trusted source of business advice for UK firms, while the credit crunch has severely dented the public image of most other business advisors.
More than a third of SMEs (38%) said that their accountant is the first port of call for business advice, in the latest Pulse survey from business software and services provider Sage. This is an increase of 5% from the previous study in 2008.
In contrast, business faith in banks, management consultants, solicitors and information on the internet has plummeted.
The proportion of firms trusting the advice of banks has dropped from 24% to just 4%, and there are similar falls in the amount of trust shown in management consultants (down to 9% from 22%) and solicitors (now 2% and previously 18%).
‘In these difficult times, businesses need information from objective, reliable and trusted parties. The fact that accountants have emerged as the most trusted advisor underlines the value they bring to UK firms,’ says Jayne Archbod, managing director of Sage’s accountants’ division.
The research, which was commissioned to reveal the factors shaping the accounting industry, also found that accountants were very positive about their practice’s prospects.
The majority (62%) indicated that they expected to grow their business during the next three years – although three out of four accountants (79%) believe winning new clients will be critical to driving growth at their practice.
A significant proportion (40%) believe new revenue opportunities will come from advisory services, following new requirements introduced by HM Revenue & Customs and Companies House.
Two thirds of businesses are unaware of changes to the European Sales List, while eight out of 10 do not know about recent iXBRL developments.
The findings also suggested accountants are sceptical about the value of online filing, with 39% saying they are yet to be convinced that XBRL enables them to prepare accounting data and find financial information more efficiently, and a further 30% are adamant it does not.
More than a third of SMEs (38%) said that their accountant is the first port of call for business advice, in the latest Pulse survey from business software and services provider Sage. This is an increase of 5% from the previous study in 2008.
In contrast, business faith in banks, management consultants, solicitors and information on the internet has plummeted.
The proportion of firms trusting the advice of banks has dropped from 24% to just 4%, and there are similar falls in the amount of trust shown in management consultants (down to 9% from 22%) and solicitors (now 2% and previously 18%).
‘In these difficult times, businesses need information from objective, reliable and trusted parties. The fact that accountants have emerged as the most trusted advisor underlines the value they bring to UK firms,’ says Jayne Archbod, managing director of Sage’s accountants’ division.
The research, which was commissioned to reveal the factors shaping the accounting industry, also found that accountants were very positive about their practice’s prospects.
The majority (62%) indicated that they expected to grow their business during the next three years – although three out of four accountants (79%) believe winning new clients will be critical to driving growth at their practice.
A significant proportion (40%) believe new revenue opportunities will come from advisory services, following new requirements introduced by HM Revenue & Customs and Companies House.
Two thirds of businesses are unaware of changes to the European Sales List, while eight out of 10 do not know about recent iXBRL developments.
The findings also suggested accountants are sceptical about the value of online filing, with 39% saying they are yet to be convinced that XBRL enables them to prepare accounting data and find financial information more efficiently, and a further 30% are adamant it does not.
CCH is a trading name of Wolters Kluwer (UK) Limited. Registered in England & Wales, No. 450650. Registered office: 145 London Road, Kingston upon Thames, Surrey KT2 6SR. Wolters Kluwer (UK) Ltd is authorised and regulated by the Financial Services Authority for general insurance business.