These are the findings of the second annual "Voices of Small Businesses and Accountants" study conducted by Intuit Professional Accounting Solutions and independent research firm Decipher Inc. A national sample of 250 small business owners and 250 accounting firms responded to a telephone survey conducted May 13 through June 3, 2003.

The survey found that 76 percent of accountants surveyed have made changes within their practice in order to maintain their success, with 19 percent adding new services to their list of client offerings. Seventeen percent reported new technology investments. 

As for continuing education, 20 percent of accountants surveyed said they are investing more in their own education and industry knowledge. Most turn to professional accounting and industry associations for training -- 63 percent of accountants belong to an industry association, which they feel has been beneficial in helping them keep up with trends and regulations.

Coinciding with accountants' focus on maintaining success and growth, America's small business owners are continuing to express their satisfaction with the quality of service they receive from their accountants -- even more so this year than in 2002. The study found that 80 percent of the small business owners polled this year are "very satisfied" with their accountant's service, as compared to 68 percent last year. At the same time, accountants themselves also feel that their clients are very satisfied with the services they are receiving -- 94 percent of accountants feel their clients are very satisfied.

In addition, 32 percent of small business owners express that their accountant has helped them significantly during the economic downturn. However, the study also reveals that an equal number of small businesses (34 percent) feel that their accountant has not helped them enough during this time, illustrating an opportunity for client service and growth, as small businesses continue to turn to their accountants for an increasing advisory role in their business.

In the area of services, small business owners express that they generally turn to their accountants for help with taxes (77 percent) and basic bookkeeping (56 percent). Accountants have also expressed that they are expanding their services, beyond basic tax and bookkeeping, into areas such as payroll (70 percent), financial statements (81 percent) financial planning and investment (56 percent), business consulting (67 percent), human resources (16 percent) and industry-specific consulting (44 percent).

However, despite the spectrum of these offerings, more than one out of three small business owners are not aware that their accountant performs expanded services, illustrating a continued need for accountants to better market their new service offerings to their clients. In fact, almost half of small business owners do not recognize any big opportunites for improvement in running their business, while 97 percent of accountants do feel that their clients have the opportunity to address certain areas. Accounting firms mainly see small business owners having an opportunity to strengthen their financial decisions, as well as improve their understanding and investing in technology. 

"Despite the confidence in one another that both groups share, the 'Voices of Small Businesses and Accountants' study helps to identify the continued opportunities for growth that exist between the two groups," said Rich Walker, Director, Accountant Services Group at Intuit.

Not surprisingly, both groups named many of the same challenges in their day-to-day operations, including generating new clients and revenue streams, managing employees and worrying about their individual practice or business. In addition, 20 percent of accountants and 13 percent of small business owners expressed that they find it a challenge to keep up with technology trends. One thing both groups would like is more free time, and personal matters -- including finances, family life and health -- are equally pressing to both groups.

Additional Findings:

• Areas where accountants can continue to improve their client service include better client communication and marketing efforts.

• 70 percent of accountants feel that dealing with clients is their most time consuming job, while 35 percent of small business owners feel the same way about dealing with customers.

• 10 percent of small business owners feel that accounting and managing finances is their most time consuming job.

• Over half of accounting firms (57 percent) have high speed broadband Internet connections, compared to (41 percent) of small businesses. 
  
  
• 56 percent of accountants and 24 percent of small business owners identify accounting software as the one technology that they can't live without.