ACCA's New Guide of Financial Skills Vital for Entrepreneurs
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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. The Association of Chartered Certified Accountants (ACCA) issued a new guide addressing financial literacy for anyone starting their own business, new to financial management, or simply seeking to improve their knowledge.
Filling the Gap
ACCA’s guide for entrepreneurs entitled ‘Financial Management and Business Success’ is, designed to help small businesses understand the importance of financial literacy and guide them through the basic elements. According to ACCA, 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.
Nurturing a Business
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 organization achieves its full potential.
For an established business, or a startup, having the right financial capabilities remains vital. According to Lindsay Degouve de Nuncques, head of ACCA Middle East, businesses are changing and innovating more rapidly than ever and the financial management needs of organizations must continue to evolve alongside their developments.
“UAE’s small business sector has long been acknowledged as crucial to our overall economic performance. The success of entrepreneurs and SMEs is very important as they account for more than 60 per cent of the UAE’s GDP, according to the Ministry of Economy. Recognizing the right financial management capabilities is therefore imperative to their success,” she said.
Here is the link to view the full report.