Global Business Trends Show SMEs Need Smarter Accounting Advice
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The 2025 QuickBooks Small Business Index offers valuable insights into how small businesses across the US, Canada, and the UK are responding to economic shifts. For South African accountants, these trends are important to watch and translate these lessons into real value for your clients.
Credit Card Debt Is Climbing—Creating Risks
Small businesses globally are increasingly turning to credit cards as a primary form of financing. While this strategy offers fast access to cash and enables short-term growth, it comes at a cost of high interest rates and a greater risk of long-term debt. In South Africa, where repo rate increases have driven up borrowing costs, many SMEs are facing similar pressures.
🧠Why is this important? Accountants should help clients plan debt strategically, understand interest implications, and build repayment strategies that don’t cripple cash flow. There’s also a growing opportunity to offer structured debt advisory services, especially as credit-related issues become more complex.
Your Client’s Bank Choice Matters More Than Ever
Not all banks are equal when it comes to supporting small businesses during periods of economic stress. The report highlights how businesses working with banks that are better positioned to manage rising interest rates performed significantly better in both revenue and employment metrics. Accountants should go beyond just doing the numbers, they should also assess the financial ecosystem their clients operate in.
🧠Why is this important? Advising clients on selecting banks that actively support SME growth and offer favourable credit terms could directly impact their ability to invest and expand.
Employment Is Still Fragile
Although some sectors are rebounding, the employment landscape remains shaky, particularly in industries like hospitality and manufacturing. Conversely, sectors such as construction and professional services are starting to show signs of recovery. For South African accountants, this underscores the need to help clients understand workforce costs, compliance obligations, and the financial feasibility of hiring.
🧠Why is this important? Offering payroll support and staffing scenario planning can make you an indispensable partner as businesses navigate uncertain labour markets. It's also a chance to help clients budget for staff retention strategies in a competitive environment.
Tech Is the New Survival Kit
Digital adoption has become a key driver of small business resilience. Businesses that embraced tools like e-commerce platforms, cash flow software, and management apps bounced back faster post-COVID and continued to grow, even amid rising interest rates.
🧠How you can help? South African SMEs face similar challenges, and accountants are well positioned to guide their clients toward digital tools that increase efficiency, cut costs, and future-proof operations. Beyond just recommending software, you can help clients integrate these tools with their financial systems to unlock real-time insights and better decision-making.
Your Software Advice is Gold
The report confirms that small businesses place a high value on financial and accounting software—but more importantly, they rely on their accountants for recommendations. In South Africa, where many SMEs may be unsure of which digital solutions to adopt or how to budget for them, this is an important advisory opportunity.
🧠Why is this important? Accountants who take the time to understand various platforms can become trusted technology advisors. You might consider creating simple tech roadmaps or bundling your services with software recommendations that fit the client's business model and growth goals.
Use AI as a Business Asset
Artificial intelligence is beginning to transform how small businesses operate. Nearly half of surveyed businesses reported improved efficiency thanks to AI tools integrated into their financial and accounting platforms.
🧠Why is this important? For accountants, staying ahead of this trend is crucial. Understanding how AI is being used, whether to automate invoicing, analyse spending, or forecast cash flow, will enable you to offer smarter services. It also helps you position yourself as a forward-thinking advisor who can bring innovation and value to your client’s day-to-day operations.
Final Thought
The QuickBooks report reinforces what many South African accountants already know: small businesses are under pressure, but those with strong, tech-savvy advisors are more likely to thrive. This is your moment to evolve from compliance provider to strategic growth partner. By addressing financing, employment, technology, and operational planning, you can help SMEs not only survive but grow—regardless of what the macroeconomy throws at them.
Source: Accounting Today
