Most small businesses today have to call upon outside accountant services for their companies, according to a new survey by the Sage Small Business Accountants Usage 2013 Study.
The survey, which was conducted in March 2013 among 673 small business owners in North America, said 71 percent of small businesses currently use the services of an outside accountant, and 66 percent of them began using their services early, either at the company start-up stage or within six months of founding.
These small businesses — companies with fewer than 100 employees — need professional accountants to help manage their taxes and financial planning. While larger businesses typically have a staff of in-house accountants, many small businesses cannot afford full-time accountants on their payroll.
More than half of the survey respondents agreed, or strongly agreed, that their outside accountant services were “critical to the success” of the business, and only 11 percent disagreed. Out of the businesses that do not use an outside accountant, 54 percent told Sage they prefer to do their own accounting, while a quarter of respondents cited cost savings.
Financial expertise is an in-demand skill in the United States. The number of accounting jobs has been increasing in the last few months despite still-anemic employment figures. In a monthly employment update from March, the Bureau of Labor Statistics highlighted the 11,000 accounting and bookkeeping jobs added to the economy that month, in addition to other positive areas like health care and construction.
Other Sage surveys confirm that many small businesses need outside accountant services. In a November survey measuring the financial literacy of small businesses, business owners said that dealing with taxes was their No. 1 management weakness. While their core management strengths were activities like dealing with clients or suppliers, two-thirds of business owners claimed that they needed to learn more about financial planning and tax payments in order to be more effective.
In another survey — last year’s Sage Small Business Sentiment Study — companies reported that their biggest obstacles to growth were high business costs, regulations and taxes. That, Sage notes, once again highlighted the importance of accountants who can apply sound money management techniques and have a firm understanding of the tax code.
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