New financial literacy guide launched
ICAEW has teamed up with Sonia Brown of the National Black Women’s Network (NBWN) to launch The Guide to Financial Fitness in Business to help its members new to business with financial literacy, reports Clive Lewis.
The SME Finance Monitor, a six-monthly survey for UK Finance, shows that only 47% of businesses that have been trading for under two years are successful in getting an overdraft from a bank. For loans, the figure is 21%.
It is vital, therefore, that businesses both understand and control their finances adequately to instil confidence in their key stakeholders, including banks, alternative finance providers, suppliers and HMRC.
Against this background, The Guide to Financial Fitness in Business was launched at an ICAEW/NBWN event at Chartered Accountants’ Hall on 3 July. ICAEW President Paul Aplin made a presentation and then answered questions from the audience. NBWN founder Sonia Brown MBE chaired the event. Other speakers were Aleka Gutzmore, founder of the Financial HUG™ Money Program and Sherine Silva, managing director and solicitor at Hodders Law.
Sharon Gunn, Executive Director, Members Commercial and Shared Services, ICAEW said: “Starting and running a business requires the entrepreneur to understand the dynamics of the business – both what drives its profitability and how to manage its cashflow to spot potential problems in time to take corrective action. That is why ICAEW has produced The Guide to Financial Fitness in Business.”
The guide deals with financial accounts, accounting and record keeping, raising finance and managing cash flow, and how business profits are taxed. These are the essential elements of finance and accounting that business owners need to master from the very beginning of their business’s life.
“Once learnt, the skill of understanding a business’s finances is never forgotten,” Gunn says. “It really is worth the investment of time to make yourself financially fit for business, and ICAEW is delighted to play a part in helping businesses on this journey.”
Clive Lewis is former ICAEW head of enterprise
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