According to a study by Xero, the importance of accountancy has been emphasised due to the COVID-19 pandemic. Many small to medium-sized enterprises are now considering them as key workers in the UK’s economic recovery.
Xero recorded that 43% of small business owners said that their company’s accountant was an essential part of the company’s survival during the pandemic, with an impressive 63% saying their accountant delivered an unquestionable high standard of service. A further 37% of business owners suggested that their accountant enabled them to retain their members of staff during the most tumultuous time of lockdown.
In addition to this, a lot of small to medium-sized enterprises also highlighted how vital technology has been for their company’s financial development during the pandemic. It has been a driving force in keeping the businesses thriving during the worst part of the epidemic in particular. Almost half of the business owners questioned in Xero’s survey said that the cloud and its technology had been large support that has enabled staff to work from home with the company’s accountant, safely and remotely.
Saving data to the cloud has been one of the changes accountants have been making to their way of working due to the Coronavirus pandemic, as well as businesses alone.
Many business owners went to government websites in order to seek resources at the beginning of the pandemic. Here, they were advised about cloud-based software to survive as a business. Without this ground-breaking technology, many companies would have risked a huge financial loss. Now, 45% of companies have said that their accountant is more important than it has ever been. 14% had contacted their accountant for the very first time due to the pandemic and 38% have said that they have a better relationship with their accountant than before the pandemic even began.
Accountants have been particularly useful in providing help and support in areas such as VAT, tax returns and payrolls.
The fast-growing cloud software has been an invaluable source for small businesses surviving financially during the pandemic. It is now shaping the accounting landscape and how companies manage their finances with accountants remotely.
Accountants play an essential role in transforming small firms, and in relation to the pandemic, saving them from financial chaos.