95% of SMEs recognise strategic importance of accountants, FreeAgent finds

Almost all (95%) of UK business leaders acknowledge the importance of accountants to their organisations, According to new research from online accounting provider FreeAgent.

The survey, conducted among business leaders and accounting professionals, provides an overview of the skills, expectations and perceptions surrounding the accounting profession.

The research found that the role of a modern-day accountant goes beyond number-crunching; it extends to providing valuable insights, supporting data-driven decisions, and helping organisations navigate complex financial terrain.

Notably, it found a convergence of opinion between accountants and business leaders on the top skills accountants need to be successful. Both accountants (59%) and business leaders (55%) concur that a high level of attention to detail “is the most crucial skill for accountants”, underlining the profession’s requirement for precision and accuracy.

Meanwhile, business leaders feel the next most important skills for the accountancy profession include analytical skills (42%), problem-solving skills (39%), regulation and policy awareness (39%), and clear communication (32%). Accountants, on the other hand, prioritise problem-solving skills (56%), analytical skills (46%), an enthusiasm for numbers (44%), and presentation skills (28%).

While both business leaders and accountants prioritise analytical and problem-solving skills, business leaders rank analytical skills more highly than accountants – which FreeAgent said “likely reflects their expectations for accountants to provide valuable insights and data-driven advice over their business finances”.

The research also found that one in 10 business owners (10%) believe they will have to seek additional funding in order to protect their business in the coming year. For accountants, being seen as a trusted partner who can deliver real value is essential and, while 44% of business leaders would describe their relationship with their accountant as professional, fewer than one in ten (8%) describe their relationship as “outstanding”.

In addition, it found that the perception of the value accountants can deliver to a business is expected to improve in the coming three to five years, with 83% of accountants believing that their clients will change their perspective on the profession for the better.

In fact, FreeAgent’s recent Accountant and Bookkeeper Monitor survey found that while two thirds (66%) of accountants and bookkeepers have continued to offer the same range of services in the past three years to clients, nearly a third (29.9%) have expanded their offerings, demonstrating a demand for a shift in services following a period of economic downturn.

For those looking to expand services, the findings also highlighted the core functions that business leaders consider fundamental services provided by accountants, including tax planning (54%), handling dealings with HMRC (53%), and creating or submitting tax returns (48%).

Roan Lavery, CEO of FreeAgent, said: “This data underscores the critical role of accountants in modern business, shedding light on the skills and expectations of both accounting professionals and business leaders. As businesses continue to evolve to face continued economic pressures head-on, it’s likely that we will see an increased demand for accountants who possess a unique blend of skills and a strategic mindset for serving clients.

“However, it’s concerning that there are still significant barriers in place discouraging people from following a career in accounting. I would love to see greater awareness of the contribution accountants make to modern business, helping address these barriers and improving the perception of the industry.”