Equal opportunity in accounting

Rising support for gender diversity, inclusivity in profession

The importance of diversity and gender balance in professional fields, including accounting, has gained recognition in recent times.

The accounting profession, as a crucial component of the business world, said Association of Chartered Certified Accountants (ACCA) chief executive officer Helen Brand (OBE), greatly benefits from incorporating varied perspectives and experiences into its decision-making processes.

As one of the most influential voices in the profession, Brand, who was in Kuala Lumpur on Sept 6 for the 88th ACCA Anniversary Gala Dinner, sat down with StarEdu to talk about the evolving landscape of accountancy, particularly in relation to diversity, inclusion, and the future of work.

As of October 2024, women make up a substantial 62% of the accounting workforce in Malaysia, compared to 38% for men, according to ACCA’s member demographics.

“Diversity of thought and inclusive representation are not just moral imperatives – they are essential for driving better business performance and innovative solutions.

ALSO READ: Tackling inequalities

“Different perspectives can also lead to better solutions by avoiding groupthink and by ensuring a comprehensive understanding of customer needs,” Brand shared.

Brand, who is a founding member of the International Integrated Reporting Council (IIRC), is also a member of the United Kingdom government’s Professional and Business Services Council, and has participated in a number of trade advisory forums and university advisory boards.

Many businesses, she pointed out, are now committed to the United Nations Sustainable Development Goals (SDGs) due to increasing pressure from the public, governments and regulators, requiring them to demonstrate social inclusion alongside profitability.

SDG 5, she said, is one of the 17 SDGs that seeks to achieve gender equality and empower women and girls.

Brand

Gender equality is a basic human right and an essential factor for building a peaceful, prosperous and sustainable world, she added.

“It’s becoming increasingly important for businesses to show they include all parts of society in their workforce and have a positive impact.

“Inclusive slogans, however, must be backed up with tangible achievements.“Reporting on gender diversity in annual and integrated reports has become as essential as financial performance reporting,” she said, noting that companies excelling in gender diversity often see better financial results due to a broader talent pool that gives employers the biggest opportunity to recruit the best person.“Inclusion means recognising different attributes as equal, not lesser, and that’s what we can achieve by making sure that there’s equal representation with women,” she explained.

Brand emphasised that the UN SDGs play an important role, providing a clear framework to guide people’s actions and assess their progress.

The focus, she said, should not just be on financial performance.

“The ongoing discussion about sustainability, including the impact businesses have on people and the significance of human capital, is a major step forward, extending beyond the scope of the SDGs,” she said.

Gender diverse teams, said Universiti Tunku Abdul Rahman (UTAR) Faculty of Business and Finance Department of Commerce and Accountancy head Dr Sonia Johanthan, bring varied perspectives that enhance problem-solving and decision-making.

“In accounting, this means better risk assessments, financial planning, and client relations.

“Diversity also fosters creativity, which is critical for addressing complex client needs and adapting to evolving regulations in the accounting industry.

“According to a prior study, diverse board members often excel in building strong client relationships, leading to improved client satisfaction and retention, consequently increase in the firm’s value.

“The study also showed that organisations with gender diversity often outperform less diverse ones in profitability and operational efficiency,” she said.

Driving change

ACCA, said Brand, has made significant strides in promoting gender parity and broader diversity within its ranks.

“Of the 46 members on ACCA’s governing council, 26 are women, with the overall membership at 52% male and 48% female, which is nearing parity. The majority of our students are women,” she said, adding that this shift is not merely symbolic; it reflects a concerted effort to cultivate an inclusive culture and provide equal opportunities for professional advancement.

“It’s important to understand that driving diversity and inclusion is a cultural issue within an organisational business.

“Implementing systems and processes to support this culture doesn’t yield instant results; it takes time. For example, you may have a single woman on the board or at the executive level, but it does not make a difference when they’re in the minority, and their voice often isn’t heard.

“While one is better than none, achieving true diversity is a gradual process that requires continuous effort,” she said.

The real disparity, she said, is when women tend not to progress to more senior roles, despite having extensive educational and professional experience.

“In order to be a female leader, maybe about 30 years ago, you had to take on the attributes associated with men, because you had to show that you were strong, decisive, and could move things forward.

“Now, we understand that there are different styles of leadership that are equally valid, more consultative, collaborative, solutions focused, less driven by ego and more driven by outcomes, and this opens up possibilities to men and women who want to lead in a different way,” she said.

She added that it is essential for everyone to be on board and aligned to the organisation’s purpose to be a successful business, and one way to achieve this is by ensuring that every person feels supported and able to reach their full potential.

“Sometimes, interventions – whether through new laws or regulatory changes – can help drive the change that is necessary, because you need a shock to the system for it to change.

“For example, if things like board membership and leadership positions were left to develop organically, it might take many more years before we are able to reach parity,” she said.

Diversity in all aspects

Brand explained that while gender is a significant issue, particularly in some countries, there are many other important aspects of diversity that also need attention.

These include individuals from less privileged economic backgrounds, people of different ethnicities, and those with neurodiversity, as there are various ways in which certain groups have been excluded or not provided the same opportunities as others, both in society and in the workplace.

“There is a growing focus on the broader concept of diversity and inclusion, which ensures that everybody has the best possible opportunity to thrive,” she said.

She added that ACCA has implemented a range of initiatives to foster an inclusive environment and provide women with the tools and support they need to thrive, including offering specific training programmes to help women develop the confidence and skills to apply for roles they might not have considered before.

“We’ve also put in place flexible working arrangements that support both women and men in balancing their professional and personal commitments,” she said.

Alongside its diversity initiatives, she said, ACCA is also at the forefront of equipping its members with the competencies needed to navigate the profession’s evolving landscape, proving that diversity in skillsets is also valued.

“The integration of technology into the skillsets of professional accountants will become even more crucial moving forward.

“We’ve launched continuous professional development courses for members who are already qualified to make sure that they update their skills to remain relevant, and that covers top topics such as data science, data analytics, internal audit, new standards, and sustainability,” she said.

Brand believes that the profession’s ability to harness these technologies in an ethical and inclusive manner will be a defining factor in its long-term success.

“We need to ensure that the algorithms and data used are free from bias, and that the governance frameworks protect individual privacy and promote transparency.

“Accountants will play a pivotal role in navigating these complex ethical considerations,” she said.

Towards better support

“Gender bias still exists in the business world, although it has diminished over time.

The obstruction to career progression and professional growth for women is the challenge of a work-life balance, particularly for those with children. In a fast-paced and high-pressure environment of a professional accounting firm, long hours and constant change are the norm.

During my pregnancy, while working in Malaysia, I was reassigned from client work to the firm’s training centre in my third trimester, where I handled administrative tasks and facilitated in-house training.

When I returned from maternity leave, I was again given client assignments, which made me feel as though I was back on track with my career.

To empower and support women in the profession, firms need to offer greater flexibility in their work options.

This includes the possibility of working from home and flexible working hours. Additionally, firms should be transparent about career development opportunities by providing structured mentorship, professional development programmes, and clear paths to promotion.

This will help women accountants make informed decisions about their careers and achieve their ambitions.

By fostering an environment of support, firms can retain valuable talent and ensure that women can thrive in the profession.”– Sunway Business School Department of Accounting lecturer

Choo Sook Yin“The main issue lies in the persistent stereotype about women’s abilities, which limits their opportunities for growth.

In many Asian countries, where the workforce is predominantly male, the lack of female role models makes it more difficult for women to envision their own career progression.

The demanding nature of accounting roles can be especially challenging for women, particularly those juggling responsibilities in traditional households where they are expected to fulfil domestic obligations.

Additionally, women often face a networking gap, limiting their access to influential professional connections that are crucial for career advancement.

This underscores the need for focused efforts by firms, professional organisations and policymakers to support the career development and professional growth of women in accounting.

For example, the 2023 Global Gender Gap Index highlights Sweden as a leader in promoting gender equality, with high female educational attainment and robust parental leave policies.

Pregnant women in Sweden can take up to 390 days of maternity and parental leave, and women with children under eight are allowed to reduce their work hours by 25%. Such policies could help empower women, encouraging them to grow in their profession.”– UTAR Faculty of Business and Finance Department of Commerce and Accountancy head Dr Sonia Johanthan

Women at the fore

The recent appointment of Datuk Zaiton Mohd Hassan (pic) as vice president of ACCA marks the first time that women have held all three officer posts simultaneously in the global professional accountancy body, founded in 1904.

Zaiton joins fellow senior officers Ayla Majid, president and sustainability strategist from Pakistan, and deputy president Melanie Proffitt, from England, who is the chief financial officer of Farncombe Estate, a hotel group.

Together, they represent more than 252,500 members and 526,000 future members across 180 countries, a press release dated Nov 18 read.

Zaiton is the chief executive officer of the Malaysia Professional Accountancy Centre (MyPAC), a non-profit dedicated to helping students from poorer backgrounds pursue careers in finance. She also holds senior non-executive director positions, including chair of GX Bank, Malaysia’s first digital bank.

She was elected to ACCA’s Council in 2016 and previously served as president of the ACCA Malaysia Advisory Committee. Additionally, she has served as deputy chair of the International Federation of Accountants (IFAC) Professional Accountants in Business (PAIB) Committee.

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Be sexually safe this Valentine’s

Don’t let your partner kiss you if they are recovering from a cold sore or ulcer caused by HSV-1 as they can still pass the virus on to you. — AFP

G. vaginalis is the most common bacteria in the vagina and a common cause of bacterial vaginosis. — Filepic

https://youtu.be/2iWShIc3SiI 

 Absolutely amazing video clip... I really appreciate it..... Its an eye opener for our new generation who forget their roots and traditions. That's what have made us retrogress somehow to lead to immoral aspects.... Thumbs up to sender, Sister Swa

 

Being in a monogamous relationship, or abstaining from sex, doesn't necessarily guarantee from sexually-transmitted infection.

 Valentine's day usually invokes the notions of love and romance.

Just imagine, you are on a nice dinner date with your other half and spend the night together in an almost fairytale-like evening.

But this lovely memory soon gets shattered when you or your partner discover unusual symptoms in the genital region.

Suddenly, worry – and even suspicion of each other – fills the atmosphere between the two of you.

And it doesn’t help that it is a topic many people might find difficult to bring up with their partners.

Truth be told, most men and women who are in faithful relationships or who have not had sex before do not expect any unusual symptoms in their genital region.

To suddenly discover a wart, a painful ulcer, or even a smelly and fishy discharge from the vagina, can be distressing.

Whether it’s kissing, skin to skin contact, or vaginal, oral or anal sex, each of these interactions can pose a risk of disease transmission.

But before you jump the gun and start thinking that your partner has cheated on you or lied about their sexual history, hold your horses – he or she could still be innocent!

Here are the top three sexually-transmitted infections (STIs) that one may develop even if you are in a faithful relationship OR have not had sex before.

> Herpes simplex virus (HSV) 1

HSV-1 results in an incurable viral disease commonly known as herpes, which usually causes cold sores and oral ulcers in and around the lips and gums.

These cold sores and ulcers usually cause quite a bit of discomfort, especially when eating.

However, during the recovery stage of the cold sore or ulcer, you will usually not feel anything and may not even remember that you have it.

But it is still infectious at this stage and you may inadvertently spread the virus to your partner while kissing them.

The tricky part comes if you’ve engaged in oral sex with your partner.

Your partner may then develop ulcers around their genital region.

It is a misconception that genital ulcers are exclusively caused by HSV-2 as HSV-1 can also cause such ulcers.

According to the World Health Organization (WHO), about 70% of the world’s population are carriers of HSV-1. The good news is that oral and genital herpes are often asymptomatic (do not have symptoms).

They also do not spread to your partner when there are no active ulcers.

They only flare up when your immune system is weakened and become contagious through contact when an ulcer is present.

Flare-ups can occur once every few months to once every few years, to even once every few decades.

You may experience tiredness, chills, fever and body aches before the painful ulcers emerge, often in the same place either at the genitals or mouth.

It is not all doom and gloom however, as you can get an accurate diagnosis with either a swab test of the active ulcer or a blood test two to three months after an active infection.

Getting a confirmed diagnosis can equip you with knowledge on how to prevent this infection with lysine supplements or by treating any active ulcers with antiviral medicines such as valacyclovir.

If left untreated, these ulcers often get painful, but will eventually recover by themselves after two to three weeks.

> Human papillomavirus (HPV) warts

I know it’s a lot to take in after hearing about HSV, but hang in there as we discuss our next disease: HPV warts.

These are cauliflower-like warts caused by HPV.

There are over 100 strains of HPV.

Apart from the 14 cancer-causing high-risk strains, there are also numerous low-risk strains that cause warts.

HPV warts do not turn into cancer, but are often unsightly and manifest themselves in and around the genital region.

HPV is a very common virus that can be found in a large majority of sexually-active persons.

However, it is often well-controlled by our immune system and does not cause any major symptoms.

HPV can be exchanged between you and your partner during sexual contact.

And when your body encounters a new HPV strain, it can cause the warts to develop.

The good news is that although it is unsightly, these warts are often harmless and can be treated with a variety of options, including creams, freezing with liquid nitrogen, and ablation with heat or electrocautery.

While these warts are easily treatable, a cause of greater concern are the high-risk strains like HPV 16,18 and 45.

These strains affect women more because of their ability to cause cervical cancer.

However, both women and men can protect themselves and their partners by getting vaccinated against these strains.

So fret not if you notice an unusual cauliflower-like lump or wart in the genital region; just speak to your doctor to get it assessed and treated.

> Bacterial vaginosis

Last but not least, one of the biggest causes of a fishy and foul-smelling vaginal discharge is the condition known as bacterial vaginosis.

It occurs when there is an imbalance between the good and bad bacteria in your vagina, and is often caused by the bacteria called Gardnerella vaginalis, the most common bacteria in the vagina. 

In the event of a big build-up of bacteria, it can also cause one to develop symptoms of vaginitis, i.e. inflammation of the vagina, resulting in swelling, pain, and even painful sexual intercourse.

Until now, doctors and scientists do not know the exact mechanism of how this occurs, but sex – with or without condoms – often exacerbates this condition.

This condition can be easily diagnosed with a vaginal swab and treated with a vaginal pessary or oral antibiotics.

If you have read up to here, fret not, today can still be an amazing day for you and your partner – just make sure you practise safe sex and get yourselves tested for STIs as a precaution if you haven’t already.

By Dr Julian Hong who is a general practitioner (GP) in Singapore. For more information, email starhealth@thestar.com.my. The information provided is for educational purposes only and should not be considered as medical advice. The Star does not give any warranty on accuracy, completeness, functionality, usefulness or other assurances as to the content appearing in this column. The Star disclaims all responsibility for any losses, damage to property or personal injury suffered directly or indirectly from reliance on such information.

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Attacking the brain

Stroke kills more women than men each year but there are preventive steps you can take to minimise your risks.

IN Malaysia, strokes are the third leading cause of death for women, following heart attacks and pneumonia.

For some unknown reasons, many women choose not to join a post-stroke rehabilitation programme.

It is more deadly to women than breast cancer, and if it doesn’t kill you, can leave you with permanent disabilities.

A stroke is sometimes known as a “brain attack.”

It occurs when blood flow to a part of the brain is blocked by a blood clot or plaque, and brain cells begin to die.

Here are some facts about how strokes affect women differently from men:

> More women have strokes later in life.

> After age 85, stroke affects many more women than men.

> It is twice as common for women between 20 and 39 to have a stroke compared to men of the same age.

> Having a history of problems during pregnancy like gestational diabetes or preeclampsia.

> Using hormonal birth control while smoking.

> Being on menopausal hormone therapy during or after menopause.

> Experiencing migraines with aura, atrial fibrillation (irregular heartbeat), and diabetes.

Many strokes are preventable and treatable.

By knowing your risk factors and making healthy changes, you can minimise your risks of experiencing a stroke.

Three types of stroke

Ischemic stroke is the result of blockage of blood flow to the brain. This is the most common type of stroke, and it happens most often when a person has a blood clot or atherosclerosis, a condition when an artery is clogged with plaque

Hemorrhagic stroke, caused by bleeding into the brain.

This type of stroke happens when a blood vessel in the brain bursts, and blood bleeds into the brain.

An aneurysm, which is a thin or weak spot in an artery that can burst, is responsible for this type of stroke.

Mini-stroke, also called a transient ischemic attack or TIA, can happen when, briefly, less blood than normal flows to the brain.

TIA usually lasts only a few minutes or up to several hours. Many people aren’t even aware that they had a stroke.

Stroke affects different parts of the brain, and depending on which part, you may experience problems with speech, movement, balance, vision or memory.

Division of brain

The brain is divided into four main parts: right hemisphere; left hemisphere; the cerebellum; which controls balance and coordination; and the brain stem, which controls all of our body’s functions that we don’t think about, such as heart rate, blood pressure, sweating and digestion.

A stroke can happen in different parts of the brain.

In the right half of the brain, a stroke can cause:

> Mobility issues on the left side of your body.

> Problems with misjudging distances. This can cause falls, or inability to guide your hands to pick something up.

> Short-term memory loss. You may be able to remember events from 10 years ago, but may forget the directions to your regular grocery store.

> Misjudgement of abilities to do things and unusual behaviour such as leaving your house without getting fully dressed.

In the left half of the brain, a stroke can cause:

> Mobility issues on the right side of your body.

> Difficulty completing everyday tasks quickly.

> Trouble speaking or understanding others.

> Memory problems, or a tough time learning new things.

In the cerebellum, a stroke can cause:

> Dizziness, nausea (feeling sick to your stomach), and vomiting.

> Stiffness and tightness in the upper body that can cause spasms or jerky movements.

> Balance problems.

> Eye problems, such as blurry or double vision.

In the brain stem, strokes are most harmful.

Impulses that start in the brain must travel through the brain stem on their way to the arms and legs, so individuals that suffer a stroke in the brain stem may also develop paralysis.

Beware of these symptoms

Some women are more at risk because of certain health problems, family health history, age and habits. These are called risk factors.

There are certain risk factors that cannot be changed, such as age, race or ethnicity, or family history. The only thing that you can do is to control other stroke risk factors, such as high blood pressure, diabetes, smoking and unhealthy eating.

Common symptoms of stroke include:

> Trouble seeing in one or both eyes.

> Severe headache with no known cause.

> Trouble walking, dizziness, or loss of balance or coordination.

> Numbness or weakness of face, arm, or leg, especially on only one side of the body.

> Confusion or trouble speaking or understanding.

Recovering from stroke

The process of recovery can take a lot of time and depends on many factors, like the type of stroke you had, the area of your brain affected, and the amount of brain injury.

Recovery begins once you are medically stable, and this is within a day of suffering the stroke.

Your next steps will involve changes in everyday habits, medicines and rehabilitation.

In some cases, surgeries may be needed to lower the risk of another stroke.

The first step is to learn about your condition and what you should do during recovery.

Your doctor, nurses and physical therapist can answer questions you may have about about the treatment and rehabilitation.

The next critical step is to take steps to prevent another stroke from happening.

Stroke patients are always at a higher risk of having another down the road, so you need to:

> Identify and control your personal risk factors.

> Be consistent with your treatment plan. It is designed to help you recover from your stroke and prevent a recurrence.

> Continue taking medications even if you feel better. Discuss with your doctor before making changes. Also, determine the rehabilitation services you will need.

For unclear reasons, many women do not join a post-stroke rehabilitation programme.

After a stroke, you will often recover some function in the first few months. This is part of the body’s natural healing process.

But women who do go to stroke rehabilitation reap the following benefits:

> Regain as much independence as possible.

> Relearn skills and abilities that were damaged or lost.

> Learn to cope with any remaining limitations.

Setting a goal

Settling a goal can motivate you to measure your progress - TNS

Another important step is to set goals for your recovery.

You need to set realistic and measurable goals for recovery in every area of your life that has been affected.

Stroke recovery may be fast in the first few months, but it may slow down eventually.>>

When you set goals, it can motivate you to maintain progress.

Create a timeline for achieving long-term goals.

Take a multi-step approach for each goal and celebrate the short term wins when you gain them. And finally, don’t give up! The aftermath of a stroke can make patients feel powerless.

Part of your recovery is determining how to live as independently as possible.

Be reasonable with yourself, and be prepared to face challenges as you adapt to the differences in how your body works.

The road to stroke recovery may not be easy, but by focusing on celebrating your progress at every step, you can reach your goals.

Ensure you also have adequate nutrition and nutritional supplements to expedite the healing and recovery process.

Datuk Dr Nor Ashikin Mokhtar is a consultant obstetrician and gynaecologist, and a functional medicine practitioner. For further information, email starhealth@thestar.com.my. The information provided is for educational and communication purposes only and it should not be construed as personal medical advice. Information published in this article is not intended to replace, supplant or augment a consultation with a health professional regarding the reader’s own medical care. The Star does not give any warranty on accuracy, completeness, functionality, usefulness or other assurances as to the content appearing in this column. The Star disclaims all responsibility for any losses, damage to property or personal injury suffered directly or indirectly from reliance on such information.

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Read more:

How to recognise signs of a stroke, and what to do ...

Remember "FAST": “Face” (does the face look uneven?), “Arms” (is one arm weak or numb?), “Speech” (does the speech sound strange?), and "Time" (4.5 hours before brain damage). If you notice these signs of a stroke, get the person to a hospital as quickly as possible. — Filepi

Boosting your brain function as you age

Brain Attack (Stroke) - UCLA Neurosurgery, Los Angeles, CA

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Promoting women entrepreneurs; mind your finances

Do we need specific initiatives to help female entrepreneurs? Some say no, because men and women face similar obstacles in business. However, there can be no denying that women face challenges not experienced by their male counterparts.

LAST May, the SME Association of Malaysia organised a talk on women entrepreneurship at its regular SME Club get-together. We were worried that the topic would not be interesting, but to our surprise, the event was well received.

About a hundred people participated in the talk.

When we told the SMEs that we were going to have a talk on women entrepreneurship, some of them asked: Why talk about women entrepreneurship? Does it matter? Why bother?

After all, business is a men’s world. The place for women is at home.

Others said there was no need to differentiate women entrepreneurs from entrepreneurs in general, as many of the barriers faced by female-owned SMEs were similar to those faced by male-owned SMEs.

To this, I would say: Yes and no.

While male and female entrepreneurs may face similar constraints in general, women face specific barriers and challenges not experienced by their counterparts.

While women make up about 50% of Malaysia’s population, less than 20% of the SMEs are owned by women. Even though the number for women entrepreneurs is small, it’s nonetheless encouraging as it shows that women no longer buy the stereotype of business being a male domain.

There are several key reasons for women to get into business. Running your own business provides flexibility in managing career and domestic responsibilities.

Also, it gives some degree of personal freedom to women who are dissatisfied with “fixed” employment. Job flexibility, like work hours, office location, environment, and the people they work with, is appealing to many women.

Other reasons for women to start a business include income security and career satisfaction. Some women become entrepreneurs due to some personal circumstances, like being laid off, divorce, or the retirement of their spouse. They start a business to improve or maintain their social or economic status.

Some women who do not have any previous work skills or experience start a business in order to prove that they can be productive and useful.

The majority of women-owned businesses are smaller outifts than those owned by men, and they are mostly concentrated in the service sector (about 90%). Many of these businesses are likely to be unregistered micro-enterprises operating in the home or on temporary premises, with few employees and limited capital for expansion.

Access to financing is one of the biggest challenges. They are less aware of the options relating to loan and grant opportunities. In addition, women usually lack the collateral required compared to men, stemming in part from restrictions on asset ownership.

Women entrepreneurs are also less likely than their male counterparts to have a history of interaction with formal financial systems, lowering their credit-worthiness and potentially raising interest rates on loans assumed.

They also encounter obstacles in accessing opportunities to acquire knowledge and skills that underpin successful entrepreneurship. This may be due to impediments in access to education, training and job experience. These are usually compounded by the demands of domestic responsibilities.

Time constraints further limit women entrepreneurs’ formal networking, which, in turn reduce access to skill and capacity-development opportunities. Formal networks, such as business associations, provide a wealth of information on business opportunities, access to government officials, grants and support programmes, as well as credit credentials and access to loan packages, to name a few.

Good networks provide good access to information and resources. First-hand information allows entrepreneurs to move one step ahead and grab the opportunities. A good pool of resources would help entrepreneurs to survive in bad times and to expand more effectively.

The Government needs to take a proactive role in promoting women entrepreneurs. We need to put in place gender-responsive policies and capacity-building initiatives to address the structural, institutional and socio-cultural inequalities.

It would perhaps be best to start by enhancing their access to finance, which is essential in building a good business foundation.

By Datuk Michael Kang who is the national president of the SME Association of Malaysia.

Mind your finances

 

Up to 36 of business failures are caused by inadequate financial management, according to a report by the ACCA. —123rf.com

IN GENERAL, more than 50% of startups fail within five years, and up to 36% of business failures are caused by inadequate financial management, according to a report by the Association of Chartered Certified Accountants (ACCA) entitled “Financial management and business success - a guide for entrepreneurs”.

The report says many entrepreneurs are not equipped to make informed and effective decisions about their financial resources.

“Having the right financial capabilities remains vital throughout the life of a business, whether you are just starting out, have an established business or are looking towards a final exit from a firm,” explains Rosana Mirkovic, ACCA’s head of SME policy.

“Businesses are changing and innovating more rapidly than ever, and the financial management needs of organisations must continue to evolve alongside their developments. Recognising the right financial management capabilities is therefore imperative to their success,” she explains.

Mirkovic adds that understanding financial information is vital for offsetting the risk of business failures as it reveals the early warning signs of impending problems.

The report by ACCA addresses the financial literacy skills gap, potentially serving as a guide to those starting their own businesses and are new to financial management.

Business planning plays a critical role at every stage of the business, says the report.

“Preparing a business plan pushes you to identify and assess the opportunities and threats facing your business. It helps ensure that you have an in-depth understanding of your market, the competition and the broader business environment,” it elaborates.

Effective planning takes into account long-term goals, objectives, strategy, tactics and financial review.

ACCA also advises startups to seek good financial advice and involve their accountants or individuals with financial expertise at the planning stage to take full advantage of their expertise in areas such as business planning, raising business finance, tax planning and setting up financial management systems.

Significant financial expertise may be needed to understand and evaluate the different financial options entrepreneurs may have. This includes knowing the company’s financial strength, financing cost, financial flexibility, business control, financial risk, personal finances and business strategy.

“Good financial control offers far more than just keeping track of purchases and sales. Rather than approach financial control as a chore to be left to the bookkeeper, your aim should be to see how the right capabilities can improve your business,” the report advises.

ACCA notes that business owners should gradually develop the capabilities of their in-house financial team.

“Choosing the right solution for your particular business takes careful planning. Your overall investment in financial capabilities — whether you are paying for additional employees, higher salaries for more skilled employees, training costs, use of external providers or upgraded systems — must be affordable and offer value for money,” it adds.

But financial management is at its most powerful when used to drive improvements in business.

Moreover, for many entrepreneurs, it could also lead to a successful business exit. Preparation for a successful exit typically begins far in advance of its final date.

Effective exit planning needs to start early and take into account a whole range of issues like timing, succession, management systems and tax efficiency.

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