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October 5, 2011

SME finance functions key to growth: CIMA

Small and medium enterprises (SMEs) should engage management accountants in decision making if they are to fuel growth and create jobs, according to a report by CIMA (Chartered Institute of Management Accountants).

The report, supported by recruitment company Hays, found that SMEs have not transformed their finance functions, nor have they engaged management accountants in supporting decision making to the same extent as leading companies.

In fact, SMEs that engage their management accountants more than their peers reported higher financial performance through the provision of better management information, the study said.

CIMA president Harold Baird warned that excluding management accountants from making decisions means the drivers of cost, risk and value may not be analysed to identify opportunities and manage performance for the long run, resulting in the creation of “false economies”.

Hays senior finance director Nik Pratap added: “SMEs need finance professionals with strong commercial and change management skills, and who have the ability to work with key stakeholders to support bids, customer profitability, pricing, sales and marketing activity if they are to capitalise on the recovery.”

 

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