Over two thousand businesses went insolvent in August: Prime Accountants explain why accounting support is essential for small businesses

In August 2026, a total of 2,075 small businesses entered insolvency across the UK. While this is a 19 per cent decrease compared to July, it is still an astronomical amount.

Prime Accountants is a leading Midlands-based accountancy firm. Its team have offered their unique insight into why they believe insolvencies are high and what small businesses can do to help themselves in the face of adversity.

Paislei Godley, a Director at Prime, offers tax support to businesses across the Midlands.

Paislei said: “Small businesses are struggling. It is no secret that in past years costs have risen and allowances haven’t followed suit.

“With rising energy costs, higher payroll costs and the increase in late payments, it is now more important than ever for small business owners to get in touch with an accountant.

“While it may be seen as an added cost, small business owners need the support of an accountant so that they can see their businesses thrive.”

The sectors under the greatest financial pressure include construction and retail, which recorded a combined 2,032 insolvencies in the second quarter.

Even though insolvency rates are still high, the amount in 2026 is 10 per cent below the rate in 2025.

Paislei said: “Insolvencies are falling. However, there are still things that businesses can do to minimise the risk of insolvency.

“An accountant can help you reduce the risk of tax non-compliance. We can ensure timely filings for Self Assessment, VAT and payroll charges to ensure that businesses don’t receive unnecessary penalties.

“There are also tax benefits, of course, of speaking with an accountant. We can help you legally minimise your tax bill using allowable expenses, credits and reliefs to help lower your overall tax liabilities.”

On top of spotting allowances, accountants play an important role in growth for small businesses.

Paislei said: “A professional accountant can add more value to your business than you realise. They can help you improve your business cash flow.

“We can support you with building reliable cash forecasts so that you can spot any shortages early and manage your cash flow through slower periods.

“Our team of accountants are here for you and your business. We are committed to offering support to small businesses so we can see them thrive.

“If your small business is in trouble, get in touch with our team.”

For support with tax efficiency, get in touch with the team at Prime at  https://primeaccountants.co.uk/ or 0121 233 2992