Versatility key for SMP success, ACCA study shows

Small and medium-sized practices (SMPs) must diversify in order to be successful, according to a new study from The Association of Chartered Certified Accountants (ACCA).

The global body for professional accountants has issued a report called 'The Global SMP business model: understanding a changing profession' that concludes competition for survival is harder than ever before.

New reality

The new study looks at how small businesses practices have needed to change their operational models in order to adapt to a new environment.

ACCA head of SME policy Rosana Mirkovic said: "While at the global level, the SMP sector’s offering remains highly focused, with the core SMP offering still based on assurance, tax and compliance we can see that this core technical skill set is highly adaptable and transferable."

Mirkovic went on to explain that deregulation can spur innovation and greater resilience.

Global survey

The survey was conducted by ACCA in association with other international bodies such as the Institute of Singapore Chartered Accountants (ISCA) and Chinese Institute of Certified Public Accountants (CICPA).

The value-added services that SMEs gained from using professional accountants were the main focus of the research, and professionals practising in the UK, Singapore, Hong Kong, China and many other locations were asked to comment on their business models.

"The core technical skills of an accountant are proving to be highly transferable and adaptable but planning and commercial discipline is required. The finance profession has a big role to play in helping SMPs meet this new challenge and as such there is much to gain from sharing insights and best practice across borders," Mirkovic said.