Many small business owners have been hit hard by the Covid-19 pandemic, with those operating in sectors such as hospitality and leisure having a particularly challenging year.

New research, conducted by QuickBooks and shared by Business Matters Magazine, revealed that, on average, small business owners in the UK have spent £7,000 of their own money to keep their business afloat.

According to the survey, one-third of those questioned gave up their own salaries in order to retain staff, while 41 per cent gave up bonuses and 30 per cent also gave up their own dividends. In addition, almost half sacrificed their holiday.

The research also found that one-third of small business owners in the UK have turned to their accountant for advice and support during this challenging period.

Head of product compliance at QuickBooks Pauline Green commented: “Payroll took on a new emotional significance as small business owners were forced to weigh up challenging decisions such as putting staff on furlough or making pay cuts.”

However, despite the challenges of 2020, the survey also found that many small business owners are optimistic about the future. Two thirds intend to keep all of their furloughed staff, while one third of those questioned even said they plan to expand their teams.

As the pandemic has shown, having support from professionals such as accountants is valuable for small businesses. If you found you were having to prop up your business using your personal savings, working with cash flow consultants like S4B could help your company in the future.

In a blog last month, we explored the many ways that an accountant can support a new business, including with assessing its tax liabilities and providing financial information to support decision making.