Accountants a lifeline for SME owners with mental health issues

New research from the IPA-Deakin SME Research Centre has found that accountants, bookkeepers and business advisors play a crucial role in addressing mental health issues in small business owners.

The study entitled Using Intermediaries to Support the Mental Health of SME Owners examined the capacity of business advisors to provide support for the mental health of small and medium enterprise (SME) owners.

One of the Chief Investigators of the study, Professor George Tanewski, disclosed that SME owners experience higher levels of psychological distress than wage-earners due to business-related challenges including chronic financial pressures, extended work hours, and the weight of decision-making which could lead to stress, anxiety, depression, burnout, and even suicide.

SMEs make up 98% of all Australian businesses, employ over 5.1 million people and contribute one-third of the nation’s GDP—yet mental health initiatives tailored to SME owners remain scarce in Australia and internationally.

In Australia, 22% of SME owners have been diagnosed with a mental health condition, whilst 57% reported stress levels beyond the normal range, and 43% said business-related stress affected them “more than half the time” to “all the time.”

The study found that many SME owners struggled to obtain help for mental health and wellbeing issues due to time constraints, financial limitations, and the demands of running their business; however trusted business advisors could serve as first responders by identifying early signs of mental health issues.

Targeted training for business advisors on relationship building and Mental Health First Aid (MHFA®) could equip advisors with the information and tools to provide timely, targeted support for their clients; helping them identify both financial and mental distress and connect clients with mental health services.

Deakin University Executive Dean, Business and Law, Professor Jenni Lightowlers, said business advisors played a crucial role in identifying and addressing the mental health needs of small business owners, which was significant for both personal wellbeing and economic resilience.

“It’s clear that small business owners deeply trust their accountants and bookkeepers, often sharing challenges beyond finance, including personal struggles and major life events. This positions them as a vital bridge between SME clients and mental health support,” Professor Lightowlers said.

“With small businesses driving economic growth and employing millions of Australians, the impact of poor mental health among SME owners extends far beyond the individual—it affects jobs, families, communities, and the broader economy.”

Institute of Public Accountants CEO, Andrew Conway, said the number one concern among accountant members was the mental health of their small business clients.

“This research has the potential to change—and even save—lives by raising awareness, reducing stigma, and equipping accountants with the tools and confidence to support their clients effectively,” Mr Conway said.

“Ultimately, it’s a call to action for accountants to embrace their role in supporting the mental health of their small business owner clients— something many of our members are already doing – and helping them not just survive, but thrive.”

Beyond Blue Chief of Engagement, Greg Jennings, said integrating mental health into everyday business interactions was a practical and innovative way to support small business owners.

"Timely, targeted support doesn’t just help individuals—it strengthens businesses and communities," Mr Jennings said.

"Engaging accountants and other business advisors as mental health ‘first responders’ is a smart, scalable solution to tackling the growing mental health crisis among SME owners."

The study is based on the IPA-Deakin SME Research Centre’s Counting on U program (2021–2024), the world’s first sector-wide study on how business advisors can support SME owners' financial and mental health, which highlighted the power of trusted business advisors in helping SMEs tackling mental health challenges.

The research was funded by the Australian Treasury, NHMRC, IPA, Beyond Blue, WorkSafe Victoria, and Mental Health First Aid Australia, with support from CA ANZ, CPA Australia, and the Institute of Certified Bookkeepers.

Key findings from the study:

• Strong advisor-client relationships lead to reduced financial stress and improved wellbeing in SME owners.
• Trusted business advisors play a crucial role in identifying client mental health issues early and facilitating timely interventions.
• Relationship Building Training (RBT) and Mental Health First Aid (MHFA®) serve as a combined early prevention and response strategy, empowering business advisors to offer financial and emotional support to SME clients.
• Acting as a 'triage', advisors provide initial emotional support as well as business advisory support while guiding SME clients towards professional help when needed.
• Leveraging established networks of business intermediaries provides a scalable and cost-effective mental health support model for SME owners.

Recommendations from the study:

• Invest further in training intermediaries as a major strategy for protecting SME owner mental health through subsidising training fees, integration into formal education, and identification and training of other intermediaries.
• Alleviate barriers that deter accountants and bookkeepers from taking on an intermediary role, including transformation of organisational culture and business models, broadening advisors’ duty of care, and protecting and supporting advisors’ own wellbeing.

About the IPA-Deakin SME Research Centre

The IPA-Deakin SME Research Centre provides cutting-edge SME research, transformative training, and strategic policy advocacy to foster sustainable growth, innovation and global competitiveness. Our applied research and initiatives are shaping the future of SME ecosystems through impactful partnerships and thought leadership, with a strategic focus on the following areas: wellbeing, business sustainability, leadership and growth, internationalisation, innovation, and digital transformation. The Research Centre is sponsored by IPA.

A full copy of the research whitepaper is available here.