From a release submitted to The Laker News
TORONTO, ONT: A recent survey of 500 Canadian accountants has revealed several surprising conclusions about their frustrations, fears, thoughts on provincial support for SMBs, the investments that make them wary, and how many clients are actually using the financial technology they need.
And for a little fun, the survey even identified which Canadian celebrity they would back as an SMB CEO.
The survey conducted on behalf of Plooto, a leading payment automation solution for small-to-midsize businesses (SMBs), asked accountants, bookkeepers, and finance professionals a series of revealing questions that provide a snapshot of the current state of Canada’s accounting industry.
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Key Findings of the Survey:
IT’S HARD OUT THERE FOR AN SMB
Asked what they think are the biggest financial threats to Canadian SMBs, more than half of Canadian accountants (54.5%) said ‘inflation increasing their own costs.’
This was followed by interest rates making borrowing rates more expensive (46.1%); staff turnover (41.2%); lower prices offered by larger corporations in the same space (39%); interest rates cooling on consumer spending (34.1%) and foreign competition (32%).
ACCOUNTANTS CALL OUT ONTARIO’S SMB SUPPORT
Asked which province they think is doing the least to help SMBs succeed, a definitive quarter (24.5%) of accountants cited Ontario.
Quebec was a distant second at 15%; followed by Alberta (13.3%); BC (11.4%); Manitoba and Newfoundland and Labrador (tied at 7.25%); Saskatchewan (5.9%); and New Brunswick and PEI (tied at 4.9%).
Accountants considered Nova Scotia as the province doing the most for SMBs, with the lowest vote of 4%.
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ACCOUNTANTS SHINE THE LIGHT ON COSTLY SMB MISTAKES
Asked what the biggest financial mistake they see Canadian SMBs make on a regular basis, 21% of Canadian accountants said ‘not implementing the proper technology.’
This was followed by ‘not paying enough attention to cash flow’ (19%); investing in elaborate and expensive workplaces (12.2%); hiring too quickly (10.6%); buying rather than leasing equipment (10%); overpaying to attract a top-tier executive (9.8%); hiring too slowly (9.2%); and funding the first year with non-submitted HST payments (8.0%).
ACCOUNTANTS HESITATE TO ADVISE INVESTMENT IN ENTERTAINMENT AND EDUCATION
Based on the profitability of their current clients, accountants said they would NEVER invest in: arts, entertainment and recreation (32.2%), educational services (24.5%), travel and hospitality (22.9%), agriculture, forestry, fishing and hunting (19.8%) and; finance and insurance (19.6%).
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THE ECONOMY IS CLEARLY KEEPING ACCOUNTANTS UP AT NIGHT
Asked to choose the factors that are keeping them up at night, 48.8% said ‘current interest rates,’ followed by ‘fear of a recession’ (46.7%); ‘worry that their SMB clients will go under’ (29.6%); the current Federal Government (27.3%); ‘another pandemic’ (26.9%); the 2024 U.S. elections (25.3%.) and; ‘a different Federal Government coming into power’ (25.1%).
ACCOUNTANT IRRITATIONS UP CLOSE
Asked what the most irritating things their clients do on a regular basis are, Canadian accountants said ‘not sending required information’ (64.7%); not reading financial reports (50.2%); not making time to discuss financial reports (48.4%); not paying invoices on time (47.8%); submitting information with ‘bad math’ (44.5%) and; not listening to recommendations (44.3%).
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SMBs DON’T HAVE ALL OF THE TECH RESOURCES THEY NEED
Accountants say less than a third (31.4%) of clients have all of the tech in place that they need, despite its far-reaching benefits.
When their clients use fintech, 65.1% of clients can reconcile their books faster, and 56% can make and receive payments faster.
Bonus Insight:
RYAN REYNOLDS COULD RULE THE C-SUITE
Asked which Canadian celebrity they thought would be the most effective in running a SMB, nearly a quarter of Canadian accountants said Ryan Reynolds (27.1%). Reynolds edged out business celebrity Kevin O’Leary (22%) and left Keanu Reeves (15.3%), Drake (12.6%), Arlene Dickenson (8.6%), and Michele Romano (4.1%) as distant alternatives.
