Some of the prerequisites of strong and transparent micro, small and medium enterprises (MSMEs) are a favorable business environment, competence, skills, entrepreneurial culture and access to finance.
Limited access to finance remains one of the main obstacles to growth in the MSME sector. Overcoming this challenge would allow MSMEs to develop and expand their production, improve infrastructure, comply with various international and national standards, attract potential investors, develop different skills and increase working capital.
PMCG, in partnership with PricewaterhouseCoopers (PwC), is assisting the Service for Accounting, Reporting and Auditing Supervision (SARAS) under the Ministry of Finance of Georgia to develop new, simplified financial accounting and reporting standards for MSMEs.
The project was officially launched on March 29 and will be implemented in the following three main stages:
- Assessment of current regulatory framework, practice and gaps to meet international standards and requirements, and assessment of demand of financial intermediaries for MSMEs’ financial documentation
- Development of corporate financial accounting and reporting framework for MSMEs and development of self-learning materials for MSMEs
- Development and implementation of communication campaign to raise awareness about new corporate financial reporting framework
As a result of the collaboration, new, simplified financial accounting and reporting standards will be developed for MSMEs that will ultimately improve the quality and transparency of corporate financial statements, enable easier compliance with obligations, reduce administrative burdens, and provide an opportunity to focus on business growth and access to finance.
The assistance is being implemented under the UK Government Good Governance Fund (GGF) project “Corporate Financial Reporting for Micro, Small and Medium Enterprises”.