ACCOUNTING body CPA Australia has warned the small business sector must be given greater support to develop their financial management skills for the sake of the sector and the Australian economy’s ongoing health.
CPA chief Alex Malley said measures to support the further development of SMEs financial skills should be part of both major parties’ election commitments.
“The government’s recent announcement of funding to help SMEs in areas including human resources management and environmental sustainability is welcome and important. Ditto the coalition’s commitment to reduce the compliance burden. These commitments however must be underpinned by strong and tangible measures to improve SMEs’ financial management and literacy,” he said.
“The sector was particularly hard hit during the GFC. They had come off a period of an extended buoyant economy and many were ill prepared for the nature and depth of the downturn.
“With the business climate still uncertain, good financial management is paramount. It is the platform on which all their key business relationships, including with banks, is built and is a critical component in addressing the issue of access to finance.”