ACCA (the Association of Chartered Certified Accountants) says that small businesses with well-developed finance teams achieve faster, more sustainable growth for longer and can attract investment to help them develop.
A new report from ACCA - Accountants for small business - says that the SME finance function plays a critical role at different stages of an SME's growth in attracting investment and helping them to grow. According to ACCA, SMEs need to make themselves ready to be able to receive finance and that the burden should not be solely on the lender or investor.

ACCA Head of SME 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 book-keeping. Their role is vital at different stages of an SME's development.

She continued: '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. Despite that fact, most SMEs don't take advice before applying for loans; most have no trained staff in charge of their finances; and most don't produce regular management reports.

'While focus has largely been on who won't lend to SMEs, small businesses have a part to play in making themselves finance-ready.'

A new, free guide for small businesses and other useful support initiatives have been launched by ACCA aimed at helping SMEs with their finance operations. For more information visit http://bit.ly/ZvrJIk