SME Finance Leaders Must Get Intimate with Day to Day Business
Association of Chartered Certified Accountants (ACCA), global body of professional accountants, stated that growth in business must not be considered static, rather it should be continuously managed to have success.
Association of Chartered Certified Accountants’ SME Global Forum warned that the top professionals in finance need to closely monitor the daily operations of a business so that it does not become stagnant.
A new paper was published titled ‘Building the finance function in growing businesses’. The subject of paper was business growth. SME Global Forum of ACCA said in the paper that financial heads must commence to act as partners of business to get clear understanding of daily operations. This will assist them in better decision making and allow them to completely understand the effect of the decisions. The forum further added that most of the debates on business growth accept that growth is possible for businesses in every situation,however real scenario is by and large different.
Senior policy adviser of ACCA, Charlotte Chung, said that there is a lot of difference between finance department of stagnant business and of growing business. The SME Global Forum has analyzed, in detail, the factors that help an organization to grow and they have come up with a fact that growth is not dependent on the wish of an organization; rather it entails continuous management and frequent analysis of correct and timely information.
He continued that finance function of an organization has a very important role in its growth. Finance heads must begin to act as partner in organizations and must involve themselves in daily operations of a business. Financials leaders must be central hub of information in a business that wishes growth. They must gather, analyze and spread information across the organization where needed. That information may be related to law, goals, financing decisions, new business opportunities etc. The Forum has made certain recommendations for entities to create an atmosphere assisting growth.
Charlotte Chung added that there is lot of focus on SMEs around the globe but encouraging forming more SMEs is not enough. Policies must be made that help in achieving sustainable growth.