Small firms cold shouldering accountancy advisers

It’s very, very scary to have just read a survey from the Institute of Leadership and Management revealing that although 19% of small businesses were not confident they can manage their business’s finances without an expert, around 39% are currently without professional accountancy advisers.

Apparently sole traders, at 54%, are most likely not to use a professional adviser for financial issues, compared to 20% of micro businesses.

“It’s alarming to see that two in five sole traders are currently operating without any professional guidance on their business needs, whether that is an accountant, a financial adviser, a solicitor or even a bookkeeper,” said Karen Barrett, chief executive of told ILM writer Helen Mayson

Many small companies are struggling to “make ends meet in the current environment”, but the right financial advice “could make all the difference”, she added.

Last month, according to ILM, figures from the Department for Business, Innovation and Skills revealed that there were about 48,000 more new businesses at the start of 2010 compared to the same period in 2009.

Some 64.2% of private sector businesses are sole proprietorships, while small and medium sized enterprises account for 99.9% of all companies.

Do you think this is worrying?