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You are here: Home » Latest News » Accountants key to business success, say academics

Accountants key to business success, say academics

Academics from the Bucharest University of Economic Studies and the International Federation of Accountants have found a strong link between a firm having a good relationship with its accountants and its overall performance after examining more than 90 studies.

Amongst the studies they examined was Australian research into the relationships between SMEs and their accountants which found that using an accountant increased sales by 8.1 per cent on average and reduced the chance of insolvency by 29 per cent.

According to the Bucharest study, SMEs tend to employ the services of small or medium-sized accountancy firms for business advice as well as core accountancy services and this explains the positive impact these relationships have on businesses.

The study also found that larger firms benefit from the use of external accountants but usually for advice on accounting techniques. Where internal accountancy functions are able to contribute to business strategy, the study found that overall business performance was boosted.

LINK: The Relationship between Accountancy Expertise and Business Performance

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