How Can Auditing Firms Help SMEs in Seeking Business Finance in 2022

Most people consider accounting firms as the firms which provide accounting and auditing services only. They may think that the scope of services of an accounting firm is confined to such limits of providing basic accounting and book-keeping services, which is a misconception. At present, a well-known professionalized accounting firm plays a magnificent role as a business advisor and assists its client to formulate the required strategies to face the unanticipated economic downturns.
If we talk about how an accounting and auditing firm helps the SMEs to acquire finance required by them, then there can be a list of ways by which the SMEs can approach the firms to seek business finance. The fundamental factor which helps the auditing and accounting firms to provide assistance to SMEs to gain finance is that these firms have a complete overview of the clients' or SMEs working and business activities. Having all the required information regarding the SMEs will provide the firms to give accurate advice regarding the selection of the source of finance.
Read more: Business finance management during tough economic times

Ways by which the accounting and auditing firms can help SMEs seek finance:

1.Identification of the need for loan and finance

The accounting firms may go through the statements and all the documents that may represent the present condition of the SME and it may thoroughly analyze it. After assessing the requirement, the firms may assist the SMEs if they require any loan or not and to become eligible for such loans. Most of the time the SMEs may not be able to explain to the lenders or the banks why they need funds or how much they require, hence accounting firms help to solve this kind of issue.

2.Identification of the appropriate source of fund

After analyzing the capability of the SMEs, the accounting firms may suggest the appropriate sources of finance for the SMEs. As the firms have the complete information of the SMEs, it can ascertain the amount which the SMEs can repay without any delay and it may also select the sources which may provide funds at minimum costs.

3.Helps to get the approval of funds from lenders or bankers

The accounting and auditing firms help the SMEs to maintain and collect all the records and statements in the most accurate manner which can be used to apply for loans and funds. Most financial institutions ask for the financial statements of the SMEs to understand their cash-flow structure and their financial position to ensure if they can repay the funds or loans in time. Accounting firms provide all the required assistance to the client so that they can approach the financial firms easily and get approval.

4.Helps in acquiring funds within a short time and in a cost-effective manner

The SMEs may not have adequate resources or funds with it, while they are in search of finance. They may be in urgent need of funds, but due to the limited resources, they may not be able to meet their goals. In such situations, the accounting firms may undertake the process of finding the appropriate source of the fund as per the capability of the SME and they may carry out the process without much delay as they deal with end number of clients and they have the knowledge of most of the financial institutions and viable sources of funds.

5.Ensures proper mobilization of funds received

After the selection of appropriate sources and making it easy for an SME to acquire funds the accounting firms also helps to ensure if the received funds are appropriately utilized or not. It always monitors the flow of funds and channelizes it to the section of business that requires it. The firms also help the SMEs to meet all the compliance and legal requirement to avoid huge penalties and fines in the future. Accounting and auditing firms in Dubai not only focus on providing accounting services but also provides an all-around financial service that is required by its clients to survive in the competitive market.
From the above points, it is evident that accounting and bookkeeping firms not only provide accounting services to their clients but also assist them in meeting their financial requirements in the most cost-effective and time-efficient manner whenever they need such services.
Read more: Tips to separate business and personal finance for startups

How can CDA help?

Due to the increase in the compliance requirements by the respected authorities, it has become harder to approach a financial institution and gain the required funds. Accounting firms play a vital role in helping SMEs to get the required funds. CDA is one of the leading accounting firms is known for providing personalized service to its clients. It is always ready to provide solutions to the clients for their financial issues such as compliance requirements, auditing needs, bookkeeping, etc. So, to know more about CDA approach us.