Introduction
UK SMEs—accounting for around 99 % of businesses—face ongoing challenges: fragile cash reserves, limited financing, and a lack of exit planning. While many clients perceive their accountants as simply compliance ticketing—focused on tax filing and deadlines—our independent conversations reveal a deeper desire for something more:
“That would be fantastic… I didn’t even know I could ask for regular planning and forecasting.”
This disconnect underscores a pivotal shift: educating clients helps them appreciate the advisory role their accountants can play, unlocking opportunities for proactive strategy and financial control.
The Financial Pressures SMEs Face
1. Short cash reserves and liquidity risk
• Around 56 % of UK businesses report cash reserves lasting no more than six months
• Nearly 30 % have less than four months of runway—and 2 % have no reserves, putting ~110,000 SMEs at risk
2. External financial pressure
• 30 % cite inflation, interest rates, and costs as their top challenge
• 41 % report cash flow as their greatest challenge; 41 % lack six months’ emergency funds
3. Under-utilisation of forecasting
• Just 35 % of SMEs have formal business plans, compared to 86 % of larger firms
4. Low exit planning preparedness
• A tiny fraction of SME owners have a documented exit strategy, missing out on value maximisation opportunities
The Perception Gap: Clients Want More
Conversations with clients of accountants consistently reveal that:
• They view accountancy as compliance-first, expecting timely filings and tax services.
• Proactive planning, forecasts, and exit strategies are rarely anticipated—they’re often pleasantly surprised when offered.
This finding aligns with broader studies: while 83 % of SME bosses see strategic value in accountants, only 8 % rate their relationship as “outstanding”
VFD Pro’s Response: Growing Your Numbers
To bridge this education and perception gap, VFD Pro designed Growing Your Numbers—a suite of forward-looking programmes built to empower accountants and clients alike:
1. FiMBO (Financial Management for Business Owners):
o Demystifies cash runway, budgeting, and forecasting
o Equips firms with dashboards to track liquidity, stress-test scenarios, and shape growth plans
2. Exit Planning Programme:
o Establishes early, clear exit pathways (sale, succession, MBO, EOT)
o Enhances valuation through governance, financial structure, and team readiness
By educating clients, Growing Your Numbers does more than teach—it raises awareness about what advisory services accountants can offer, transforming both advisor and client expectations.
Why This Approach Delivers
• Stronger financial resilience: SMEs with forecast backed plans face shocks head-on, thanks to cash runway visibility and scenario planning
• Increased advisor value perception: External advisory hubs helped increase SME revenues by 11.5 % on average—and reduced stress—highlighting the ROI of proactive accounting
• Expanded service offering: Accountants offering strategic planning can grow client revenue by up to 50 %
Real-World Impact
• Clients educated through GYN programmes begin requesting forecasting and scenario planning—services previously unseen as part of accountancy.
• Advisors shift from compliance gatekeepers to trusted growth partners, delivering clarity, confidence, and long-term direction.
• Business owners gain control over finances, unlocking confidence to plan for growth and future exits.
Conclusion
The future of SME accounting lies in proactive, forward-looking advisory. But that begins with educating business owners—expanding their understanding of what accountants could do, beyond compliance.
By positioning Growing Your Numbers at the heart of this transformation, VFD Pro equips advisors with the tools—and businesses with the vision—they need for strategic financial management and exit preparation.
Let’s start the conversation: equip your SME clients with insight—and your advisory function with renewed purpose.
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