New research has highlighted the importance of accountants during the coronavirus crisis, with many SMEs now seeing them as key players in the economic recovery. A Xero study found that nearly half (43%) of small business owners believe their accountant played a critical role in their company's survival during the pandemic. Importantly, 37% believe their financial adviser has played a key role in helping them retain their staff during the worst period of the national lockdown. Even more impressive, 63% of respondents to Xero's survey said their accountant provided seamless service, even during the worst periods of the lockdown, when business was virtually at a standstill. However, during the investigation, SMEs were also quick to point out how technology had helped keep the wheels of business turning during the coronavirus crisis. Almost half (48%) of those surveyed said that cloud technology had been a great help by allowing them to work remotely and in conjunction with their accountant.
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While cloud-based software and counters were essential aspects of small business survival plans, 34% of respondents said they were using government websites and their associated resources when Covid-19 first hit. hour. Surprisingly, only 15% said they sought help from family or friends. Xero's research is proving to be good news for accountants, with 45% saying their financial advisor is more important than ever. Another 14% said they were contacting an accountant for the first time. Meanwhile, 38% of those surveyed said they now have a closer relationship with their accountant than before the Covid-19 outbreak. According to the research data, the main areas of accounting support for SMEs are VAT (37%) and payroll (30%). 70% say they are calmer in the area of tax returns. The growing range of cloud-based software that has become available in recent years has made a huge difference in the small business accounting landscape. Gary Turner, CEO of Xero, said: “Behind every resilient small business is a hard-working accountant. They have played a huge role in saving and often transforming small businesses adapting to the pandemic. Bookkeepers and bookkeepers are the unsung heroes of our recovery and their importance has never been greater to individual businesses and the UK economy.