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Johannesburg - Chartered accountants (CAs) working for small or medium practices, should try and extend the services offered to small and medium enterprises (SMEs) to beyond mere bookkeeping or preparing an annual audit, according to the South African Institute of Chartered Accountants (Saica).
Saica said a 2013 survey of five major SA banks and three specialist SME lenders showed they all agreed that a CA's input would be of value to SMEs in several areas, from acquiring finance to risk assessment.
By 2030, if the National Development Plan (NDP) has performed the way the National Planning Commission (NPC) hopes it will, 90% of the jobs it has created will be in small and medium enterprises (SMEs).
Saica has recognised that it also has a role to play. While many of its members work in big national firms or the public sector, many others are independent CAs working in small and medium practices.
"Government cannot stimulate growth on its own. To achieve the NDP vision, the private sector needs to commit to it and play a role in supporting SMEs through financing, skills development, business mentoring and synergistic partnerships," Saica said on Monday.
Financial fitness and business planning
When assessing an SME’s creditworthiness, the respondents all revealed that they automatically trusted financial reports prepared by CAs(SA) more readily than those prepared by the business itself or other independent accounting services provides, said Saica.
The lenders surveyed were also supportive of CAs providing general business advice, or even performing the same role as a non-executive director.
This would be without a formal appointment, as most SMEs are too small to require a board of directors.
Small business owners often find themselves overwhelmed by the day-to-day operational details of the company, too busy to do exactly the kind of long-term business planning in which a CA(SA) will have expertise.
“SMEs get into a windmill of doing stuff and don’t see how they could grow. They’re chasing sale after sale, but they never sit back and say, ‘This is where I want to take the business in two years time’,” said Kandis Swanepoel of Nedbank in the survey.
“Everybody always says funding is the biggest pain point for entrepreneurs. I think it’s more the soft issues – the coaching, the mentoring, the consulting."
In the small business arena, Saica said it hopes that SMEs will see the value of consulting a CA(SA) for both business and financial advice – such advice is in fact an investment in business growth.
Saica said a 2013 survey of five major SA banks and three specialist SME lenders showed they all agreed that a CA's input would be of value to SMEs in several areas, from acquiring finance to risk assessment.
By 2030, if the National Development Plan (NDP) has performed the way the National Planning Commission (NPC) hopes it will, 90% of the jobs it has created will be in small and medium enterprises (SMEs).
Saica has recognised that it also has a role to play. While many of its members work in big national firms or the public sector, many others are independent CAs working in small and medium practices.
"Government cannot stimulate growth on its own. To achieve the NDP vision, the private sector needs to commit to it and play a role in supporting SMEs through financing, skills development, business mentoring and synergistic partnerships," Saica said on Monday.
Financial fitness and business planning
When assessing an SME’s creditworthiness, the respondents all revealed that they automatically trusted financial reports prepared by CAs(SA) more readily than those prepared by the business itself or other independent accounting services provides, said Saica.
The lenders surveyed were also supportive of CAs providing general business advice, or even performing the same role as a non-executive director.
This would be without a formal appointment, as most SMEs are too small to require a board of directors.
Small business owners often find themselves overwhelmed by the day-to-day operational details of the company, too busy to do exactly the kind of long-term business planning in which a CA(SA) will have expertise.
“SMEs get into a windmill of doing stuff and don’t see how they could grow. They’re chasing sale after sale, but they never sit back and say, ‘This is where I want to take the business in two years time’,” said Kandis Swanepoel of Nedbank in the survey.
“Everybody always says funding is the biggest pain point for entrepreneurs. I think it’s more the soft issues – the coaching, the mentoring, the consulting."
In the small business arena, Saica said it hopes that SMEs will see the value of consulting a CA(SA) for both business and financial advice – such advice is in fact an investment in business growth.
