GUEST COLUMN:
Lucy Cohen
President
AAT
If you spend any time talking to small business owners, you’ll know they’re all spinning multiple plates and trying a lot of things for the first time. But the one area that no one wants to stumble through is finances, whether that’s bookkeeping, tax, filing invoices or planning for the future. At the heart of all of this are the numbers that decide whether teams get paid, whether a business can invest, or whether it survives at all. That’s exactly why financial skills matter so much.
For a lot of people, “accounting” still sounds dry or a bit intimidating. But from where I’m standing, it’s not about endless rows of figures, it’s about helping people sleep at night because they know their business is not only going to be okay but it’s going to thrive. And giving small businesses the stability they need, especially in a tough economic climate is essential.
Most SMEs don’t have a CFO down the corridor or a big team to fall back on. They have themselves, maybe a small team, and usually an accountant on the end of the phone who they trust to help them figure things out.
Across the UK, around 840,000 small businesses are supported by AAT licensed accountants. That’s roughly 15% of all SMEs, and it’s time we recognised this for what it is: a huge, often overlooked part of how the small business economy actually functions.
Our new report, Accounting for Growth, shows AAT members and students contribute nearly £4 billion to the economy every year through their salaries and income, and that figure is only part of the story. What people rarely see, but something I know all too well, is the day to day constant support accountants provide to keep all businesses afloat.
Those early years are where that support matters most. The first few years of running a business are tough, no matter how good your idea is. Money is tight, margins are thin, and one wrong decision can have serious consequences. Having someone who understands the numbers, can explain them in plain English and guide small business owners through the raft of regulation that exists, can be the difference between pushing on and packing it in.
We’ve all seen digital accounting tools popping up in banking apps, and it’s easy to assume that accounting is one size fits all advice that can be replaced by an algorithm or automation, because it’s just numbers and spreadsheets… right? So of course, a computer can do it all.
But unsurprisingly, that is simply not true. Technology can be incredibly helpful, but it can’t replace judgement, experience, years of training or accountability – vital skills that are in short supply.
So now, more than ever, we need to shout about why investment in finance and business skills matters; just as much as investment in technology. We’ve got a growing demand for these important finance skills, and not just the technical ones. Small businesses also need people with the power skills that an app simply cannot replicate, such as communication, leadership, ethics and problem solving. If we don’t invest in those skills now, it’s small businesses who will pay the price first.
Apprenticeships and vocational training are a big part of building the change that we need to see. I started my own career in Cardiff, through an AAT apprenticeship, and I still think it’s one of the best ways into the profession. It gives people hands-on experience from day one, opens doors for those who might not want or be able to go to university, and builds exactly the kind of skills businesses actually require right now and for the future.
Across Wales, SMEs play such a vital role in our economy and everyday lives. These are the businesses keeping high streets alive, creating local jobs, and backing their communities in ways that don’t always show up in economic data. They deserve the right support and that starts with more accessible routes in, more support for training, and more recognition that these are not just “nice” skills to have, they are essential.
