The need for small businesses to get professional advice has never been more evident, according to the Small Business Research Report 2015 commissioned by the SMSF Association and the management information solution group BStar.

The report, one in a series by BStar, found that small businesses are “time poor” and, as one consequence, there was a pressing need for professional advisors to provide “specialised business advice services” for both their business operations and personal finances.

SMSF Association CEO/Managing Director Andrea Slattery says the report is very positive in the sense that many people are looking to start a small business – about 250,000 a year – and of those running them there is an overwhelming majority (92%) who are optimistic about their future “even in the current economic climate”.

Across all industries, business owners believe there are opportunities for growth with 79% saying this is their focus in the 2015-16 financial year.

“This is excellent news for the economy as the 2.5 million small businesses are the country’s largest employer, and, in terms of SMSFs, they are the backbone of this super sector.

“The key missing link, however, is how many of these small businesses lack some skill sets to improve and grow their businesses or the ability to find a trusted source of advice to assist in business growth. Of those surveyed, four out of 10 do not know who to turn to for advice on improving their businesses.”

Slattery says this inability for these businesses to know how to find professional advice also flowed to their retirement planning.

“Many small businesses have self-managed funds. These small businesses are under time pressure and so the need to get the right professional advice in terms of their own superannuation is paramount.

“As we all know these businesses often reflect the highs and lows of the economy, so in ‘good times’ it is imperative they get the right advice, for example, about making contributions to their SMSF for their retirement.”

Slattery says it’s the accounting and financial advice practices that are the principal source of advice for these small businesses, including their personal financial advice about superannuation and SMSFs.

“But small business needs to understand that gone are the days of the traditional accountant who offers a finance recording function; now it is a much broader stewardship role.

“Today, they need to seek specialist advice that meets the specific needs of their business and their personal circumstances; the days of generalist advice for a ‘one-size-fits-all approach’ are fading. Nowhere is this more evident than with regards to the new profession of the SMSF advisor that is witnessing rapid change with the SMSF specialist having the pivotal role for strategic, tax and structured advice.”

Slattery says that greater growth results in more business confidence and higher employment. “Improved profits increase taxes paid and the value of businesses, critical to those enterprises looking to fund their next stage, whether it is expanding their business, a new venture or self-funded retirement. It’s integral to growing national prosperity, a fundamental belief of the SMSF Association.”

Source: SMSF Association

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