Accountants 'trusted advisors' on small business regulations

Date: 10th March 2009

Small businesses will continue to seek the advice of accountants on taxation and employment regulations, it has been suggested.

According to the Institute of Chartered Accountants in England and Wales (ICAEW), government advice does not provide sufficient help for the sector.

The comments from the institute come in the wake of the Anderson Review, which found that about three quarters of small firms had trouble finding information on applicable regulations.

Head of small business issues at the ICAEW, Clive Lewis, commented: "The motivation for this whole exercise was to save businesses the cost of taking advice and improving their compliance.

"Businesses get advice on regulation from solicitors and accountants. These are their 'trusted advisors'."

He added that until small firms can "fully trust and rely on government guidance", they will continue to turn to accounting services for support.

Following the publication of the Anderson Review, the Forum of Private Business claimed that the consultation should have reduced existing regulations, rather than overhaul existing support.