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Accountants crucial for survival of SMEs

Small businesses are calling for more tax relief in the upcoming budget to keep them afloat during the current economic climate, a survey has found. In particular, 46% of businesses surveyed want a reduction in employers' national insurance contribution rate, 27% would like to see the increase of corporation tax deferred and 21% would like the VAT reduction to 15% ride along for another year. Late payments were also high up on the list with 50% of respondents saying they were most concerned about unfavourable bank charges. The study which was conducted by Intuit, a provider of financial management solutions, reflects how the government needs to help small business during these difficult times as 'accountants are increasingly having to deal with clients unable to pay their taxes and contacting the government's Business Payment Support Service Helpline asking to spread out payments'. The results of the survey suggest that there is little hope (10%) that the budget will include any measures to help small businesses, but regardless of this, there is prospect for accountants to help their clients with 'good sound credit control practices'. Diana Flier, a compliance analyst at Intuit UK said: 'This is where accountants can be more than book keeps and year-end auditors There are clearly opportunities for accountants to provide appropriate advice on how to better manage cash flow and minimise their tax liabilities.'
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