Ending the Covid-19 lockdown fails to alleviate concerns about future viability of SMEs, according to latest ACCA UK/Corporate Finance Network SME Recovery Tracker
The survey features insights from accountants representing more than 15,530 SME clients, and this week uncovers increasing levels of stress and anxiety. 83% of accountants report that their SME clients are feeling more stressed and anxious than usual; a third are not sleeping compared to 21% two weeks ago, and nearly a fifth say they can’t cope.
Closing on the 15 July, the results present a picture of wavering confidence with cashflow impacted over the last two weeks:
- 5.4% of SMEs have decided to liquidate compared to 2.9% two weeks ago
- 23% say current social distancing rules make it difficult for them to open and trade
- 29% of SMEs have made their credit terms more favourable to get cash moving
- 66% have deferred tax payments, and of these only 34% say they will be able to meet their tax liabilities in 6 months.
The latest survey results come in the wake of the launch of the nationwide #LeaveNoBusinessBehind campaign, a call to support every business owner, so they can get back to business health and start thriving again. The CFN, ACCA UK, AccountingWeb, Clarity, AVN, Capitalise, and Accountex are the names from the accounting sector behind this UK campaign, which urges the accountancy profession to help business owners with their immediate survival and then their future business health.
Kirsty McGregor, founder of The Corporate Finance Network said: ‘Financial forecasts are an essential part of this survival – they’re a dynamic and necessary forward-looking roadmap. But we know this planning and forecasting will involve tough discussions between the SME owner, their accountant, lenders and families and there is an understandable reluctance to focus on the glaring reality of the situation.
‘The government has introduced a raft of measures which we have welcomed, but there is more to be done. That’s why this campaign is now calling on the accountancy profession to step up with their expertise and ability to motivate.’
Claire Bennison, head of ACCA UK said: ‘The lockdown may have been lifted, but this Tracker’s results show SME clients are more stressed than before. In the recent discussions we’ve had with ACCA members working with SMEs, we hear loud and clear the pressure their clients are under, clients who are hungry to find solutions to survive.
‘Addressing these welfare concerns needs to be part of the policy mix in finding these solutions, and that’s why we’re proud to be supporting #LeaveNoBusinessBehind, an inclusive campaign that aims to redress the balance and where the skills of accountants will be paramount.’