Only a small percentage of small businesses affected by the economic downturn that are creating management accounts have been advised to do so by their accountant.
The Forum of Private Business (FPB) has carried out research discovering that 15 per cent of SMEs producing such accounts were told by their accountants that it would be beneficial.
From the research, which online accounts analysis system CreditPal commissioned, 61 per cent of business owners were found to internally produce their accounts.
A quarter of those questioned said that their accounts were created internally, but with external validation from an accountant.
Only 14 per cent of respondents had all of their accounts compiled by accountants, with 31 per cent identifying credit checks as the most effective way to monitor a business's supply chain.
However few business owners were keen to supply their financial information to outside parties, with 13 per cent saying they would be prepared to provide their management accounts and six per cent saying they would supply their audited accounts.
The FPB also reports on the state of the UK's economy and launched an Economic Downturn Panel of small businesses in November 2008.
