The European Federation of Accountants and Auditors for SMEs (EFAA for SMEs) is the European umbrella organisation for national accountants and auditors’ organisations whose members primarily serve SMEs, similarly sized semi-public bodies (eg foundations and non-profits) and public entities (eg municipalities, regional governments and councils).
Since our founding in 1994, we have been the primary voice of SMPs in Europe. I’m truly honoured to have served as EFAA president since June 2019.
With our 15 member organisations – mostly national professional accountancy organisations, and including ACCA representing its European members – we speak on behalf of nearly 400,000 SMPs serving millions of SMEs. We work closely with European and international organisations to ensure the voice of SMEs contributes to policy-making and standard-setting, by gathering members’ input to highlight the need for SMPs and SMEs to have time to innovate and grow.
Shaping the future
Our aim, in short, is to help shape the future of SMEs and SMPs – and I must acknowledge the strong support and active involvement of ACCA, especially through our expert groups.
SMPs develop a deep, day-to-day understanding of their SME clients
We work to ensure our SMPs’ value is recognised at the EU level. SMPs bring something unique; they develop a deep, day-to-day understanding of their SME clients. We are committed to ensure this knowledge informs regulators and standard-setters. And here, with ACCA’s support and high-quality publications, we advocate confidently, ensuring SMPs’ role is not just promoted, but genuinely understood and respected.
Regulation concern
One of the key concerns for our members is over regulation. Most regulations are rightly designed for large corporations, but these pose unnecessary and disproportionate burden on SMPs and their SME clients.
SMEs and SMPs cannot wear a suit five sizes too large
Let me be clear: advocating for proportionate regulation does not mean lowering professional standards. SMPs are recognised for their high technical, personal and human qualities, but SMEs and SMPs cannot wear a suit five sizes too large. EFAA’s role is to ensure that rules are realistic, proportionate and aligned with the realities of smaller entities, enabling them to continue delivering value to clients and the wider economy.
Sustainability focus
The accountancy profession plays a vital role in safeguarding the public interest, preventing fraud and contributing to Europe’s welfare. For EFAA and its members, key priorities include adhering to and promoting the environmental, social and governance (ESG) principles. I sit on the EFRAG Sustainability Reporting Board and have helped develop a sustainability reporting standard that is proportionate, practical and tailored to SME needs.
We welcome the European Commission’s recommendation on a voluntary sustainability reporting standard for small and medium-sized undertakings, which prevents unnecessary burdens on SMEs in the value chain. This recommendation is a major outcome of our advocacy as the voice of European SMPs.
And we continue to promote its adoption, seeing it as a tool for SMEs to embrace sustainability while boosting SMEs’ competitiveness and appeal to both customers and employees. Our SMPs act as trusted advisers to SMEs, guiding their sustainability journey and strengthening their competitiveness, resilience and long-term success. In this role, our SMPs strengthen the European economy, where SMEs are a leading force.
Continuous learning, especially in sustainability, is essential for SMPs to remain trusted advisers
Beyond ESG, we champion integrity, quality and the crucial role of accounting and auditing. We support a proportionate audit standard for less complex entities, clarifying that this does not create ‘two types’ of auditors or audits, just as IFRS for SMEs provides a simplified yet high‑quality framework that coexists with full IFRS without undermining trust or comparability. We defend ethics and independence, and also address artificial intelligence’s impact on our profession. Our focus remains on security, integrity, transparency and the essential link between accounting and taxation.
EFAA’s independent voice ensures SMPs’ are heard, influencing regulators from the start. Our role is unique, vital and, frankly, indispensable.
Future strength
Looking ahead, many challenges remain across Europe. Our SMPs must strengthen their ability to drive both their own and their SME clients’ digital and sustainability transformation, staying on top of new regulatory requirements, and build overall capacity. Equally important is developing soft skills and attracting, retaining and upskilling talent.
EFAA for SMEs and its members work to raise awareness and help our SMPs to become future-ready. Through sharing best practices and learning from one another, our members are encouraged to address these challenges proactively and ensure access to relevant tools and training. Continuous learning, especially in sustainability, is essential for SMPs to remain trusted advisers to SMEs.
But capacity building alone is not enough. EFAA plays a vital role as the voice of SMPs at the EU and international level. In a fast-changing legal and commercial environment, SMPs need strong representation to ensure that professional standards and requirements remain scalable and proportionate. Our goal is that every new standard or rule is designed primarily with the realities of SMPs in mind and only then adapted to larger accountancy service providers.
Our profession is well accustomed to change, and we embrace it. Yet proportionality, the ‘think small first’ principle, must go beyond words. EFAA exists to bring decision-makers closer to the daily reality of SMPs, SMEs and other small and medium-sized entities.
SMEs’ days are long, filled with the challenge of innovating, creating business and generating jobs. They must be central to the conversation. Rules should not be made from a distance; our voice must be heard.
