27/04/2011
Small and medium-sized enterprises (SME) should be "proactive" when it comes to managing their financial agreements.
That was the opinion of the Association of Chartered Certified Accountants (ACCA) and an independent solicitor, Kingston Smith LLP, cited on Fresh Business Thinking.
Both bodies claimed that by managing financial agreements effectively, SMEs could help themselves to "punch above their weight" and create strong working relationships.
Their advice could prove interesting to those smaller companies who have enlisted sales finance services, or any other type of financial agreement; as it could prompt them to more efficiently manage these, helping to build good, robust relationships with their financial advisers.
The ACCA and Kingston Smith were not the first experts to praise the benefits of intelligent financial management. SME Blog has previously said that: "Keeping your finances in order will make your business a more attractive proposition to investors."
The comments came shortly after a survey found that some 90 per cent of SME owners had either "average" or "below average" understanding of financial management or the options available to be them.
One financial expert, Edward Rimmer, told New Business that this meant it was "evident" there was a "lack of knowledge" amongst small business owners when it came to their finances.
Deborah Bates