British taxpayers were appalled by the lack of regulation over MPs’ expenses, it appears small businesses are failing to apply the same logic when it comes to their own finances.

A study conducted by AAT, the professional body for Accounting Technicians, has found 80% of small businesses don’t know if their own accountant is a member of a professional body or not.

Small businesses need all the help they can get right now.  Recent figures show 141,000 small businesses have reached tax rescheduling agreements totalling £2.5bn.

To take advantage of these schemes small businesses need to keep their finance skills and knowledge up-to-date, but accountants who do not hold membership of a professional body aren’t required to do so and this could be costing small businesses.

“Professional credentials help protect your profit,” said Adam Harper, Director of Professional Development at the AAT.

“You wouldn’t employ a solicitor that didn’t belong to the law society or visit a doctor that’s not on the register, so why trust your company finances to someone who’s not regulated? 

“During such tough times we are shocked that Britain’s small businesses aren’t clear about whether their accountants are members of a professional body.

“The person who handles your accounts might have excellent training and lots of experience but without professional accreditation they are not accountable for maintaining your financial systems.”

1250 businesses across the UK were surveyed in May 2009. Around three quarters employ the services of a third party but one in four, which could equate on a national scale to over 1 million small businesses, chooses to manage their own accounts.

 “We urge all small business owners to encourage their accountant to get professional accreditation or get training themselves.  It could be the best investment they make,” said Harper.