Purpose -Following on studies of the reported importance of a range of external advice and a study of the impact of marketing advice on small and medium-sized enterprise (SME) performance, this study seeks to examine the relationship between business performance (growth) and the nature and degree of a wide range of business advice used by a sample of owner/managers of SMEs in the Manchester City-region of the UK. Design/methodology/approach -The study was conducted with 140 SMEs in the Manchester City region using an administered survey instrument. Findings -The degree of use of a range of external advice was positively related to the growth rate of the SME. In common with most previous research, the most sought-after advisers were external accountants and network contacts. Academic advice was sought very rarely. This study extends previous research and examine the nature of the advice provided by external accountants, which was found to include business, emergency, and financial management support in addition to statutory advice. The degree of provision of this additional assistance was associated with higher growth.Research limitations/implications -The relationship of advice and growth has been examined using a survey instrument. Further research is needed to understand how advice is sought, provided and used. Practical implications -Accountants, network contacts and others were significant providers of advice and, where this advice was used, then SMEs reported higher growth rates. The direction of effect is probably in favour of the value of advice, but there could be virtuous cycles of advice and growth. However, the nature and quality of advice sought, offered, understood and embedded in business practice networks and contributing to social capital require further study. Originality/value -The research extends previous studies by the range of advice and the nature of advice provided by external accountants, considered in relation to firm performance.

Research on Japanese management accounting in the past decade has grown but knowledge of Japanese cost accounting, e.g. target costing, continuous cost reduction, has tended to be drawn from large, internationally successful firms rather than small and medium sized enterprises (SMEs). Moreover, Japanese practices are not static: changing socio-economic circumstances may be exerting significant pressures for cost management changes. The research was based on 13 company visits and semi-structured interviews in SMEs in Kyushu-mainly in manufacturing. Their costing systems proved to be similar to those of larger Japanese firms. Costing systems and cost management practices, though not uniform, emphasised simple routine accounting. They were not used extensively for decision-making or performance evaluation. However, sophisticated detailed processes of cost management, often centred on engineering and quality control, were the norm. The report closes with details of two contrasting companies. One was a traditional small subcontractor struggling to survive: the other was a scientific research-based organisation with unusual and innovative control systems. The paper speculates that there may be extremities representing the past and future in the wake of global competition and changes in the banking sector. Increased pressures within supply chains coupled to new pressures from capital markets are forcing SMEs to adopt the cost management systems of their larger counterparts and, at the margins, to experiment with new forms of control that are more profit oriented. Failure to do so may be a factor in the currently high mortality rate of SMEs.