Does your business have a well developed, dedicated finance team? This is one area of infrastructure that many a small business lacks. According to the ACCA (Association of Chartered Certified Accountants), establishing your financial infrastructure with a dedicated team can attractive investment and in general exhibit faster more sustainable growth. Should this be an area that your business should look to develop?
A new reports from the ACCA called ‘Accountants for Small Business’ says that the SME finance function is an essential part in many stages of the small business growth cycle. It helps to boost potential investment – the ACCA says that small businesses need to make themselves amenable to finance and that the burden for this sort of change shouldn’t be on the shoulders of the lender or investor.
ACCA Head of Policy, Rosana Mirkovic, said: “There is considerable evidence which shows growth is much stronger amongst SMEs with a comprehensive finance function backing them up. The role of the accountant in an SME setting goes well beyond the basics of bookkeeping. Their role is vital at different stages of an SME’s development.”
“Credit providers, supply chain partners and other stakeholders need a wealth of information form the finance team of an SME. For some investors the information they require changes after investment to focus on other aspects of the business, such as agreed milestones. Finance professionals are central to providing that insight into the business at all stages.”
“Day to day financial management is the key to accessing finance. By the time the owner/manager decides to apply for any kind of funding, their chances of getting it are mostly locked in by the way they’ve run their business to date. Independent research confirms that a well-run finance function staffed with appropriately trained people makes SMEs more creditworthy and investment-ready, and is a cause, not a consequence of growth.”
So, if your business is looking for finance, it could be worth getting the infrastructure in place beforehand.