Software firm KashFlow has written to Department for Trade and Industry, Confederation of British Industry, Institute of Directors and Federation of Small Businesses calling for 25 October to be named 'National Hug Your Accountant' day.

The company hopes such a day will help get small business owners and their accountants closer together so that they can better understand each others needs.

While light-hearted, KashFlow said its campaign had a serious element as it is aimed at bringing accountants and their clients closer together so that both parties can get a better understanding of the pressures they face.

According to Companies House most recent statistics, in the 2004/5 financial year, across England, Wales and Scotland 203,111 private and limited companies were fined for submitting late accounts.

Speaking about National Hug Your Accountant Day Duane Jackson, MD of KashFlow said, 'The great thing about our campaign is that it is a fun way to address a very serious issue. A large number of small business owners do not realise the importance of keeping accurate financial records until it is too late and I think business owners would like accountants to have a better understanding of what entrepreneurial spirit is all about.'