Research by professional advice website Unbiased.co.uk has revealed that more than half of sole traders could be missing out on tax savings by not utilising the help of professional accountants for bookkeeping.

The research showed that out of the 365 businesses who carried out the online survey, 54% of respondents admitted to doing their own accounts and a fifth of micro-businesses (which consist of 1-9 employees) were also taking a DIY approach to bookkeeping.

The survey also found that small businesses often sought the financial advice of accountants, whereas 69% of micro-businesses and 36% of sole traders were less prepared to turn to a professional provider for help.

CEO of Unbiased.co.uk, Karen Barrett expressed her concern that small firms like these were going it alone and potentially missing out on tax savings by not claiming everything they are entitled to. She commented:

“There are many small businesses struggling to make ends meet in the current environment and ensuring that they have the right financial guidance could make all the difference.”

The research comes at a time when Sole Traders and small businesses should be thinking more about their bookkeeping than ever before – an HMRC crackdown on poor small business accounting is in full effect and poorly maintained records could land their owners with a hefty fine.

Photo by Dan Moyle – CC