Entrepreneurs are missing vital financial skills to ensure the success of their businesses.
ACCA addresses the financial literacy skills gap with a new guide for anyone starting their own business, new to financial management or simply seeking to improve their knowledge.
Financial management is at the heart of running a successful business. Yet many entrepreneurs are not equipped with the skills and knowledge needed to make informed and effective decisions about their financial resources.
ACCA has addressed the issue through a brand new guide, Financial management and business success - a guide for entrepreneurs, designed to help small businesses understand the importance of financial literacy and guide them through the basic elements. It’s reported that up to 36% of business failures are caused by inadequate financial management (Turnaround Management Society, 2014). Understanding financial information is vital for offsetting this risk as it reveals the early warning signs of impeding problems.
The guide stresses the importance of business planning at every stage of business life, helping to assess and identify opportunities directly, and avoid mistakes through applying correct financial knowledge.
Featuring quotes, case studies and statistics that support skilled financial management, the ACCA guide demonstrates how to make sure individuals have the financial capabilities needed to ensure their organisation achieves its full potential.
Rosana Mirkovic, ACCA’s Head of SME Policy, says, 'Having the right financial capabilities remains vital throughout the life of a business, whether you are just starting out, have an established business or are looking towards a final exit from a firm. Businesses are changing and innovating more rapidly than ever and the financial management needs of organisations must continue to evolve alongside their developments. Recognising the right financial management capabilities is therefore imperative to their success.'