Accountants must transform into trusted business and tax advisers

Contractors and micro-businesses are more likely to view their accountants as service providers who help prepare their tax returns than trusted expert tax advisers according to a survey of more than 700 contractors freelancers and micro-businesses.

Commissioned by cloud accounting software company FreeAgent the survey found that only 21% of businesses thought their accountant’s chief role was to provide advice on their business finances and tax liabilities; some 19% said the main function was to calculate how much tax their business owed.

However only 2% felt their accountant helped most with highlighting their bookkeeping mistakes.

The research revealed that many micro-business owners appear to be satisfied with the value they receive with 55% saying that they felt their accountant’s fee was fair. However 28% thought they were charged too much.

Ed Molyneux chief executive officer and co-founder of FreeAgent said: ‘With the...