19 Small Business Accounting Statistics Must Know (2024)
Small Business Accounting Statistics: Key Numbers
- 64% of business owners do their own bookkeeping.
- 30% of small businesses have an accountant
- on average 642,603 businesses get audited each year.
- 29% of the companies have already implemented the automated accounts payable process to eradicate human labor and increase accuracy.
- 1.3 million accountants and auditors are employed in the US.3
- 21% of SMBs owners admit to not knowing enough about bookkeeping.
- 72% of self-employed contractors do their bookkeeping and accounting errands without professional help.
- The accounting services global market value was $544.06 billion in 2020.
- Around 70% of small businesses don’t have an accountant.
- 60% of small business owners feel they aren’t knowledgeable when it comes to accounting.
- 64.4% of small business owners make use of accounting software.
- 70% of small businesses outsource tax preparation.
Sources: (Statista, Mineraltree, Bls, Surgent, Wasp Barcode, Accountancyage, Businesswire, Onpay, Alliance Virtual Offices, Goremotely, Capactix)
Top Complaints SMBs Have About Their Accountants
- 41% of SMBs complain that their accountants are reactive.
- 37% of SMBs are dissatisfied with their accountants’ timelines.
- 32% of SMBs feel their accountants provide a lack of guidance.
- 27% of SMBs state that their accountants don’t provide enough advice.
Source: Wasp Barcode
SMB Accounting Software Usage
- 44% use QuickBooks Online.
- 16% use QuickBooks Self-Employed.
- 15% use QuickBooks Desktop.
- 4% use Xero.
- 4% use Freshbooks.
- 4% use GoDaddy Bookkeeping.
- 3% use Wave.
- 2% use Sage 50.
- 2% use Sage 300.
- 6% use other software.
Source: Codat
Why Small Businesses Avoid Accounting Software
- 50% of small businesses use manual methods/spreadsheets for managing accounting/financials.
- 20% of small businesses outsource accounting to a third-party accountant/bookkeeper.
- 17% of small businesses haven’t had the budget for a software solution.
- 13% of small businesses haven’t had time to learn how to use accounting software.
Source: SMB Group’s What’s Ahead For SMBs in Financial Management Survey
Popular Outsourced Accounting Services by Small Businesses
- 71% of companies outsource tax preparation.
- 50% of companies outsource payroll.
- 48% of companies outsource audits.
- 30% of companies outsource tax planning.
- 16% of companies outsource personal finances.
- 14% of companies outsource bookkeeping.
Source: Wasp Barcode
Types of Accountants Employed by Small Businesses
- 45% of small businesses employ neither an accountant nor a bookkeeper.
- 22% of small businesses employ full- or part-time outsourced accountants.
- 15% employ full-time in-house accountants.
- 11% employ consultants.
- 6% employ part-time in-house accountants.
Source: Clutch 2018 Small Business Accounting Survey
Top Accountant Qualities Valued by SMBs
- 78% rank having a trusted advisor as very important.
- 74% value accountants who respond quickly.
- 74% find it very important that accountants understand their business/industry.
- 70% prioritize affordability in their accountants.
- 69% appreciate clear communication with non-accountants.
