19 Small Business Accounting Statistics Must Know (2024)

Accurate accounting is essential for the growth and stability of small businesses across the country. 

But just how prepared are small business owners when it comes to managing their finances? 

With that in mind, we’ll cover important small business accounting statistics.

Small Business Accounting Statistics: Key Numbers

• 64% of business owners do their own bookkeeping.
• 30% of small businesses have an accountant
• on average 642,603 businesses get audited each year.
• 29% of the companies have already implemented the automated accounts payable process to eradicate human labor and increase accuracy.
• 1.3 million accountants and auditors are employed in the US.3
• 21% of SMBs owners admit to not knowing enough about bookkeeping.
• 72% of self-employed contractors do their bookkeeping and accounting errands without professional help.
• The accounting services global market value was $544.06 billion in 2020.
• Around 70% of small businesses don’t have an accountant.
• 60% of small business owners feel they aren’t knowledgeable when it comes to accounting.
• 64.4% of small business owners make use of accounting software.
• 70% of small businesses outsource tax preparation.

Sources: (Statista, Mineraltree, Bls, Surgent, Wasp Barcode, Accountancyage, Businesswire, Onpay, Alliance Virtual Offices, Goremotely, Capactix)

Top Complaints SMBs Have About Their Accountants

• 41% of SMBs complain that their accountants are reactive.
• 37% of SMBs are dissatisfied with their accountants’ timelines.
• 32% of SMBs feel their accountants provide a lack of guidance.
• 27% of SMBs state that their accountants don’t provide enough advice.

Source: Wasp Barcode

SMB Accounting Software Usage

• 44% use QuickBooks Online.
• 16% use QuickBooks Self-Employed.
• 15% use QuickBooks Desktop.
• 4% use Xero.
• 4% use Freshbooks.
• 4% use GoDaddy Bookkeeping.
• 3% use Wave.
• 2% use Sage 50.
• 2% use Sage 300.
• 6% use other software.

Source: Codat

Why Small Businesses Avoid Accounting Software

• 50% of small businesses use manual methods/spreadsheets for managing accounting/financials.
• 20% of small businesses outsource accounting to a third-party accountant/bookkeeper.
• 17% of small businesses haven’t had the budget for a software solution.
• 13% of small businesses haven’t had time to learn how to use accounting software.

Source: SMB Group’s What’s Ahead For SMBs in Financial Management Survey

Popular Outsourced Accounting Services by Small Businesses

• 71% of companies outsource tax preparation.
• 50% of companies outsource payroll.
• 48% of companies outsource audits.
• 30% of companies outsource tax planning.
• 16% of companies outsource personal finances.
• 14% of companies outsource bookkeeping.

Source: Wasp Barcode

Types of Accountants Employed by Small Businesses

• 45% of small businesses employ neither an accountant nor a bookkeeper.
• 22% of small businesses employ full- or part-time outsourced accountants.
• 15% employ full-time in-house accountants.
• 11% employ consultants.
• 6% employ part-time in-house accountants.

Source: Clutch 2018 Small Business Accounting Survey

Top Accountant Qualities Valued by SMBs

• 78% rank having a trusted advisor as very important.
• 74% value accountants who respond quickly.
• 74% find it very important that accountants understand their business/industry.
• 70% prioritize affordability in their accountants.
• 69% appreciate clear communication with non-accountants.

Source: 2018 Small Business Accounting Insights Survey