The UK’s SMEs, faced with tight profit margins, few overheads to cut and limited access to credit, are particularly vulnerable to the downturn.
SME directors questioned in a survey earlier this month said they had become more negative about their prospects in the past six months. The survey of directors at 163 companies by Bowmark Capital found a sharp fall in confidence, with many respondents criticising the government for a lack of support.
As recession looms, big businesses will seek funds or advice from the stock market, investment bankers and even branding gurus, while smaller ones will rely on their accountant.
Despite the gloomy economic outlook, experts say accountants should see the downturn as an opportunity rather than a threat. They reckon accountants are well placed to expand in the SME sector and cement their reputation as valued business advisers.
Stephen Alambritis, chief spokesman for the Federation of Small Businesses, which has more than 215,000 members, says: ‘Accountants are one of the most trusted sources of advice for small business. When we ask our members who they look to for advice, it’s always accountants.
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