This month a study at the ACCA found that the difference between a fast-growing SME and slow-growing SME could well be your accountant. The study found a strong connection between the financial functions of a small business and it’s rate of growth.
Sounds pretty straight forward to Andrew Keates – accountants wirral, the better the financial function of a company surely the better the company and the better the growth rate anyway? Well no not really, the study found that a company that had key financial functions beyond just an auxiliary role and instead took on roles similar to a strategic partnership massively increased the rate of growth of an SME.
The study was based around 8 interviews with financial officers and financial controllers at businesses growing by 70% over 3 years. The study ultimately found that financial controllers that were freed of the small stresses of the simple accountancy and given more time to play a central role in the business planning attributed greatly to the large growth rates.
All the financial controllers in the study had roles that extended beyond the traditional operating day to day tasks associated with a financial controller. Growth was shown to be driven through, cash flow estimates, local tax regimes, and analysing cash flow injections for potential new markets. All tasks that you would expect to promote growth in a company!
If you’re an SME why not let Andrew Keates – Accountants Wirral, Liverpool and Chester take away some of the day to day accounting stresses and give your team time to inject growth into your company. For more information on the study please see here ACCA.