Survey Reveals How Accountants Help With Top Business Challenges for Small Business Leaders
A March survey of nearly 400 small business leaders conducted by Wasp Barcode Technologies reveals that, “small business leaders consider their accountants to be the most important professionals in their business.” In fact, accountants* are trusted more than attorneys and bankers.
About The Respondents
- Comprised of two groups
- 43% business owners
- 57% executive, C-level or senior managers
- 100% invested in decision making
- 99% of companies U.S. based
- Company size by employees:
- Wide variety of industries from agriculture to warehousing
- 67% are very satisfied with their accountants
- About 40% of respondents feel knowledgeable about accounting and finance
- 71% outsource at least one accounting function
Top Outsourced Services
- 71% tax preparation
- 50% payroll
- 48% audits
- 30% tax planning
Top 5 Small Business Challenges
- Accounts receivable/collections
- Cash flow
- Managing paperwork
- Closing the books each month
- Managing payroll
WASP Marketing Director Brian Sutter told us that he was surprised that the small-to-mid size respondants felt that their accountanting professionals could improve by becoming more proactive, even though they trust them more than any other professional. This may indicate that the in-house staff may be reactive, responding to the immediate needs of the company, rather than proactive. Decision makers are open to the advisor whose knowledge and expertise can help them to succed; they want a heads-up on potential problems and solutions to streamline operations.
Another surprising result from this report is that 74% of all respondants do not understand how ghost assets impact their books. We’ll talk more about that in our next newsletter.
The role of the accountant and CPA is more than providing tax services to businesses throughout the year. Business leaders need proactive accountants who are capable of providing advice that can help companies manage expenses and cash and find ways to increase profitability. Regardless of their accounting and finance knowledge, business leaders trust and depend on accountants and CPAs to help with top business challenges.
About the Report
The Wasp Barcode Small Business Accounting Report identifies the state of small business accounting with a specific focus on accounting challenges, staffing, and taxes.
*While the title of accountant is used interchangeably for accountants and certified public accountants (CPAs), the Wasp Barcode Study refers to mostly in-house accountants. Companies that outsource services typically work with CPAs in addition to utilizing finance personnel.
The CPA profession requires commitment, integrity, intelligence, and a strong sense of ethics. And CPAs are continually educated, tested and regulated by the State Boards of Accountancy. – AICPA