Financial literacy competencies required from South African professional accountants providing services to small- and medium-sizes enterprises

Abstract

Small- and medium-sized enterprises (SMEs) play an important role in providing employment, reducing poverty and contributing to the economic growth of South Africa. However, these enterprises face several challenges, including a shortage of financial literacy competencies. To overcome inadequate financial literacy competencies, an SME owner/manager can make use of their professional accountant’s financial literacy competencies, provided that the professional accountant does possess the required competencies. The professional accounting bodies outline the competencies required from their professional accountants in their respective competency frameworks, and it is expected that financial literacy competencies should be included in these competency frameworks. The purpose of this study was to identify the financial literacy competencies required from professional accountants when they provide services to SMEs and to explore potential gaps between the expected financial literacy competencies and the financial literacy competencies included in competency frameworks of the International Federation of Accountants (IFAC), South African Institute of Chartered Accountants (SAICA) and South African Institute of Professional Accountants (SAIPA). A qualitative exploratory research approach was used to gain insight into the financial literacy competency areas and the initial gaps identified from SME owners/managers and the professional accountants’ perspectives. The study found that financial literacy competency gaps exist in the competency frameworks under review even though professional accountants are well educated. One such gap was that SAICA does not compel the development of taxations skills during the learnership period. Furthermore, it was revealed that SME owners/managers and professional accountants have different opinions about the intentional transfer of financial literacy competencies. Professional accountants believe they intentionally transfer financial literacy competencies, and the SME owners/managers do not share this sentiment.

Klein en medium ondernemings (KMO’s) is belangrik omdat hulle werk skep, armoede verlig en die Suid-Afrikaanse ekonomie help groei. Hierdie ondernemings het egter met verskeie uitdagings te kampe, waaronder ʼn gebrek aan finansiële geletterdheidsvaardighede. As gevolg hiervan steun die eienaars/bestuurders van KMO’s op hulle professionele rekenmeesters se finansiële geletterdheidsvaardighede in die veronderstelling dat hulle wel oor die verlangde finansiële geletterdheidsvaardighede beskik. Die vaardighede waaroor professionele rekenmeesters moet beskik, moet in die vaardigheidsraamwerke van rekeningkundige gesagsliggame uitgestippel word. Hierdie studie het gepoog om vas te stel watter finansiële geletterdheidsvaardighede verlang word van professionele rekenmeesters wat ʼn diens aan KMO’s lewer. Afgesien hiervan wou die studie bepaal of daar gapings is tussen die verlangde finansiële geletterdheidsvaardighede en die vaardighede wat uitgestippel word in die vaardigheidsraamwerke van die Internasionale Federasie vir Rekenmeesters (IFRM of “IFAC” in Engels); die Suid-Afrikaanse Instituut vir Geoktrooieerde Rekenmeesters (SAIGR of “SAICA” in Engels); en die Suid-Afrikaanse Instituut vir Professionele Rekenmeesters (SAIPR of “SAIPA” in Engels). ʼn Kwalitatiewe, verkennende navorsingsbenadering is gevolg om insig te verkry in die areas van finansiële geletterdheidsvaardighede en in die gapings wat aanvanklik deur die eienaars/bestuurders van KMO’S en professionele rekenmeesters aangetoon is. In hierdie studie is bevind dat daar in die vaardigheidsraamwerke onder beskouing leemtes voorkom, ofskoon professionele rekenmeesters goed opgelei is. Een van die gapings is dat die SAIGR nie vereis dat rekenmeesters tydens hul leerlingskap belastingvaardighede opdoen nie. Voorts het geblyk dat die eienaars/bestuurders van KMO’s en professionele rekenmeesters oor die opsetlike oordrag van finansiële geletterdheidsvaardighede verskil. Terwyl professionele rekenmeesters van mening is dat hulle finansiële geletterdheidsvaardighede opsetlik oordra, is die eienaars/bestuurders van KMO’S dit nie met hulle eens nie.