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.

The studies included 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, which explains the positive impact these relationships have for the businesses.

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

Milsted Langdon’s experienced Business Innovation team offers wide-ranging expertise that will assist any business achieve its full potential.

We will work as part of your team to define your goals and provide the tools you need to achieve them.

We can help you meet every business requirement that may arise from start up to sale, from securing financing and implementing efficient, cost-effective management processes to advising on disposal negotiations.

Please visit our Business Innovation page for further information.

LINK: The Relationship between Accountancy Expertise and Business Performance