Do Accountants contribute towards making businesses successful?
A global study in conjunction with the IFA (International Federation of Accountants) places emphasis on the importance of having an Accountant and how this is beneficial to the overall performance of a business says Researchers from the University of Economic Studies, Bucharest.
“It has long been assumed that taking advantage of the breadth and depth of experience and expertise of professional accountants helps organisations optimise performance, efficiencies, and more,” said IFAC chief executive Fayez Choudhury. “It is heartening to see robust global evidence in support of this relationship.
“The report finds that organisational development and performance lead to increased use of accountancy expertise, and accountancy expertise leads to superior performance and development.”
SMEs frequently rely on accountancy practices for improved performance, better decision-taking and superior financial outcomes which impact directly on their growth outputs and better economies of scale relating to their inputs. A further research study in Australia consisting of a census of over 2000 SME’s found using an external Accountant has led to 8.1% increase in sales growth and 29% decrease in businesses going under in a sink or swim scenario. SMEs in Sri Lanka, showed that more than 50% of those with no written budgets saw revenues fall while 75% of those with detailed budgets saw an increase in revenue and profits.
A review of 33 studies from around the world revealed that adopting environmentally-friendly practices internally under the guidance of an external adviser, led to organisational, financial and human capital benefits. Larger Corporations equally rely on external accountancy expertise to continue to evolve their accounting techniques to achieve regulatory compliances and best practices in the corporate world.
In conclusion to these studies business performance and accountancy expertise are closely associated. Having an internal accountancy function and strong strategic direction gives business performance a significant boost. High performance businesses will report high levels of performance satisfaction especially where their CFOs take a central strategic role and influence change management practices to drive business growth and performances
To conclude Accountancy expertise offers multiple benefits ranging from information analysis, communication, risk management and value creation. This ultimately results in the well-functioning of a business trading in an innovative and strategic environment.
At Amdas understand the value add to any business looking to employ a stand-alone Accountant through to rolling out an accountancy function that will not only facilitate the necessary processes but also bring about a strategic discipline to enhance business performance. We believe it is better to appoint the right person over and above occupying a busy desk. If the values we promote match your key objectives in your next finance hire, call the Accountancy Team at Amdas on 020 3488 2027. We’re here to help bring about positive change.