A recent survey has revealed that only a quarter of small business owners turn to professional accountant services or legal experts, either on a full or part-time basis. Despite this fact, 64 per cent of small businesses believe that the legalities should be dealt with by a professional.
Hiscox, a speciality insurer for small businesses, surveyed 600 entrepreneurs in the UK and the US. Of those surveyed, a large number revealed a lack of knowledge in important areas of their business, with 56 per cent not having sufficient knowledge of legal matters and 36 per cent admitting to insufficient knowledge of taxation. Although there are risks attached to not having adequate knowledge of law and finance, more entrepreneurs are likely to employ a communications officer on a full-time basis than an accountant or legal expert.
An insurance expert at Hiscox, Kevin Kerridge, warns that small business owners need to be aware when professional knowledge is necessary. He said:
“While it’s in the DNA of an entrepreneur to just get things done, they can open themselves up to potential risks that can lead to business interruption, or even litigation if they try to handle key areas like legal, taxes and insurance themselves.”
The survey also revealed that entrepreneurs are highly likely to deal with the whole range of duties, rather than take on outside help. 80 per cent of entrepreneurs do their own filing, while 63 per cent take care of the office cleaning.