Current challenges for SMEs and their impact on Accountants
Business Advisory Services Update
The current challenges confronting SMEs include:
- high interest rates
- high inflation
- business failures
Paul Robson, CEO of MYOB commented recently:
- “Fiscal management skills not evident in many SMEs”
- “Significant problems after 6 months”
- “Lack of understanding of suppliers’ payment terms”
- “Lack of familiarity with credit terms”
- “Inappropriate systems for control of debtors”
- “Not planning for payments to ATO”
The Australian Small Business and Family Enterprise Ombudsman Bruce Billson has commented:
- “ATO in hot pursuit of tax debt from SMEs”
- “Business conditions have deteriorated 3.5% in the last 12 months”
- “Business operating environment has been in decline for the past 2 years”
- “Concerns by small business owners about their business viability have increased”
- “Economic activity generated by small business has dropped from 40% in 2006 to 33% at present”
- “Small business share of private sector workforce has dropped from 53% in 2006 to 42% currently”
Most small and medium-sized accountancy firms provide the bulk of their services to SMEs. Therefore these challenges will affect accounting firms’ performance.
ESS BIZTOOLS, featuring Amanda Gascoigne of Amanda Gascoigne Consulting, will present a webinar identifying these challenges and how to combat them. The webinar will be held on Wednesday 14 August at 10am AEST. CLICK HERE to register.
