The Association of Chartered Certified Accountants (ACCA) has released a guide titled "Financial Management and business success - a guide for entrepreneurs" to help small businesses understand the importance of financial literacy.
"Singapore is a highly open economy, and extremely exposed to global dynamics. Strengthening financial management capabilities within local SMEs is no longer a luxury, but a necessity in the bid for entrepreneurs to secure long term growth for their organisations," said William Tan Kwang Hwee, Chief Financial Officer of Ley Choon Group Holdings Limited and member of ACCA Singapore's SME Finance Transformation Committee. "Capable accountants are akin to good co-pilots who can help business owners improve the odds to corporate longevity and success amidst a turbulent environment."
ACCA said in a press release the guide is ideal for anyone starting or seeking to improve their own business and those new to financial management.
ACCA added the guide discusses the importance and the role of business planning at every stage in the life of business. It also adopts a "plan first approach" or looking at what entrepreneurs are trying to do with their business first and connecting this to the financial knowledge they need.
According to Nina Tan, Chairperson of ACCA Singapore's SME Finance Transformation Committee, small businesses should leverage on financing and technological transformation programmes of the government to enhance their capabilities and sustain the business.
"As technology advances by leaps and bounds, SMEs must become early technology adopters and implement more robust systems that will give them an edge over competitors. The future accountant needs to be digitally savvy in addition to being technically competent," Tan added.
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