SME accountants crucial to UK recovery says Minister

Mr Scully, said COVID-19 had had the most detrimental effect on small businesses with many suffering from reduced cash flows, fewer external funding options and a greater proportion operating in vulnerable sectors.

There are about 5.5 million small businesses operating in the UK, and Mr Scully said it is important small businesses are supported by their tax advisers to be able to emerge from the economic downturn of the past 18 months.

Mr Scully said accountants are well-placed to add extra value to a small business' resilience and growth by horizon-scanning on their behalf and sharing their knowledge in a range of areas, including access to finance.

“Accountants will, by nature, understand access to finance,” he said. “It's about the diversity of finance, not necessarily just going to one of the big banks and looking for a loan. Are there any CDFIs that can get involved? It’s about different types of structures, but also just making those businesses aware of what's out there.

“Just being able to spread that knowledge through and encouraging some of the accountants’ clients to apply for that will be good for both sides.” 

As government support starts to recede Mr Scully said the next phase of the UK’s recovery will involve recovery loan schemes which businesses are able to access and the government’s Help to Grow scheme.

Aimed at SMEs and delivered by business schools across the UK, the 12-week government-subsidised training course is intended to help companies capitalise on the post-pandemic recovery and address the UK’s poor record on productivity.

Mr Scully said there are already 80-90,000 businesses benefiting from similar loans.

Tackling climate change is also a priority for SMEs, said Mr Scully, adding that the government’s SME Climate Hub contains some of the small steps SMEs can take on their journey.

“Some of it is about benchmarking,” he said. “Some of it is about actually working out what impact your business is having on the environment, and importantly, what can you do to change things that will be beneficial to the environment, and be beneficial to your bottom line.

“Despite what the media is saying, not everything costs a vast amount of money to do the right thing for the planet or do the right thing for the local area. It might be changing to LEDs, it might be turning the thermostats down, but it might be an improved use of technology, which can reduce energy use and other such issues there which will ultimately have a saving for the business, not just a big cost.”