Nearly 100% of small businesses in the UK plan to make changes in the new financial year

LONDON– (Antara/BUSINESS WIRE) –

Nearly all (99.6%) of small businesses surveyed plan to make changes to the way they do business in the new fiscal year. In fact, 41% of small businesses that plan to make changes to their business expect them to be radical.

The top five changes small businesses will make in the new fiscal year include:

• 52% will start using AI to make the fiscal year more efficient

• 50% plan to find ways to reduce tax liabilities by complying with all laws and regulations.

• 48% plan to update their financial management systems.

• 44% would be more concerned about possible tax refunds

• 41% will hire an accountant or tax advisor.

While 81% of small businesses surveyed said the economy has negatively impacted their business, 68% agreed that the new fiscal year is a time to think about changes they can make to set themselves up for success.

In fact, 62% of small businesses surveyed are optimistic about the new fiscal year because it provides an opportunity to start fresh with financial management.

Doing business differently

63% of respondents believe the new fiscal year will be a defining one for their small business. 84% of small businesses plan to make cuts in the new fiscal year, with more than two in five (44%) opting to reduce overhead costs and more than a third (37%) expecting a hiring freeze.

When evaluating the reasons for pessimism among small businesses, 34% cited financial or economic uncertainty as the main reason preventing them from making effective plans. In addition, 79% are considering postponing their investment plans until after the election.

New fiscal year resolutions

67% of small businesses agree that the period leading up to a new fiscal year is when they need the most help from an accountant. However, only 66% currently have a qualified accountant or tax advisor to help them manage their taxes.

Pauline Green, Product Program and Compliance Director at Intuit QuickBooks UK, commented: “Being a busy small business owner often means taking on multiple roles in the business, and accounting isn’t always a top priority on a day-to-day basis, which often means paperwork gets left in the ‘for later’ pile.

“Adapting to this year’s economic instability has also been a challenge, but the new fiscal year presents a great opportunity for small business owners to start fresh, with a solution that can better meet their needs and perform their accounting functions, eliminating their pain points and allowing them to remember why they started the business in the first place.”

For more information on how to grow your small business in the new fiscal year, read our guide. Here.

Methodology

Intuit QuickBooks conducted an online survey with Pollfish which was completed by 1,708 small business owners and decision makers (adults 18+) across the UK in March 2024.

Contact

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