Accountants Reveal Small Businesses’ Biggest Financial Mistakes

In a survey of more than 500 small and medium-sized business (SMBs) accountants and bookkeepers, business and financial software company Intuit found a few factors that frustrate the profession.

Reports Thursday (Sept. 14) said Intuit’s report found a lack of proper record-keeping landed at the top spot of the list of the biggest frustrations for small businesses’ accountants, with nearly three-quarters of professionals surveyed saying this was the most common problem they saw. It surpassed a lack of use of accounting software and not keeping on top of bills, cited by 60 percent and 57 percent, respectively.

Further, 85 percent of small business accountants said a significant challenge to their ability to do their jobs is small businesses’ mixing of personal and business expenses. Researchers said this can lead to higher costs from accountants and a higher risk of auditing come tax time.

Intuit revealed the result of its survey while announcing new integrations with Google in Australia, a way to link Google tools like Gmail, which is often used by small businesses, into its QuickBooks accounting solution.

While accountants are frustrated that small businesses are not using accounting software solutions, separate research suggests that SMBs are actually less interested in using the accountant itself.

An analysis published earlier this year from job search firm Indeed found that “business analyst” is the most in-demand financial profession among small business hirers, followed by “business development manager” and “data analyst.”

“Small business accountant” didn’t break the top 10 list, according to the report.

“It is interesting that we are seeing business analysts rise to the top of the list, as small businesses have traditionally relied on accountants in their growth phase,” said Indeed’s senior vice president of human resources, Paul Wolfe, in a statement at the time. “The healthy economy brings a need for companies to know where their business is thriving financially (or not) to help make decisions for the future.”