At Luminari, innovation and CPAs are at the forefront of everything we do. As we have previously discussed, with the help of our friends over at CIBC, we created a whitepaper to dissect The Future of Public Accounting. Together, we wanted to find out what CPAs can do to help small businesses grow and learn how innovation affects small business owners.
A new poll from CIBC surveyed Canadian small business owners and found that nearly nine in 10 are optimistic about the future success of their business. We were excited to see that small business owners are equally as enthusiastic about innovation as us – in fact, 75 per cent of respondents in the same survey said that they were likely to invest in innovation for their company within the next 12 months.
What does innovation mean to them?
Small business owners want to be able to evolve their business to meet their customers’ changing needs. They want to be able to use new methods and technologies to achieve better efficiency, ultimately, they want to enhance their customer’s experience.
How SMBs are adopting innovation
Digitisation is disrupting nearly every industry and small business owners have embraced it with 91 per cent of respondents using digital tools and digitally-enabled services in their businesses.
Here’s where they are struggling
When asked about the challenges they are facing, entrepreneurs named future growth prospects, HR and talent and managing cash flow as their prime concerns. Innovating can help ease the burden with fresh approaches and technology support.
How CPAs can help SMBs continue to innovate
When it comes to the growth of their business, entrepreneurs already rely on their accountants as trusted business advisors. This relationship is, in fact, so strong that 80 per cent of small business owners turn to their accountant first for advice on how to get their business going. Statistics also show that when small business owners connect with their accountant in the early phase of their business, the probability that their business will survive beyond five years increases from the industry average of 51 per cent to 83 per cent.
Small business owners and entrepreneurs who embrace disruption and innovation stand to benefit by using these perceived challenges as a lever of growth. CPAs play an outsized role of gatekeepers of emerging software and technologies so that they can help ease the challenges their clients face day-to-day. Whether it’s a new way to automate a process that’s being run manually, expanding the services lines (like bookkeeping), fielding potential candidates, or managing cash flow, CPAs are uniquely primed to help their clients continue to innovate their business so that entrepreneurs can continue to do what they do best.
* About the CIBC Small Business Optimism Survey
From August 8th to August 18th 2019 an online survey of 1,005 Canadian Small Business Owners who are Maru Voice Business Canada panelists was executed by Maru/Blue. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 3.1%, 19 times out of 20. Discrepancies in or between totals are due to rounding.