KPMG has recruited 18 staff in Glasgow and is in the market to add to its senior ranks with new partners in Scotland after launching a division aimed at winning clients among small to medium-sized enterprises.

The "big four" accountancy firm has invested £40 million to launch a new package of services for smaller private companies around the UK.

KPMG Enterprise, which will be run from the firm's tax centre of excellence in Glasgow, will include a new small business accounting service. It will allow small firms and start-ups to access services such as how to prepare accounts, book-keeping, payroll, VAT and corporate tax returns online.

While most of the work will be handled on the internet, clients will be able to interact with the accounting team in Glasgow, with fees starting at £150 per month.

Phil Charles, head of enterprise for KPMG in Scotland, said the SME focus marks a new approach for a firm which has traditionally focused on the top end of the private company sector.

And he said it has been made possible thanks to technology, which allows the firm to offer services online at competitive rates which still allow it to make money.

Noting that the move has arguably opened its target client base from 300 to 343,000 companies, Mr Charles said: "I can remember the day when we looked after [smaller] clients and kept their books and historically we couldn't make money out of that.

"The introduction of cloud accounting and the ability to efficiently look after these clients on the internet and deliver a fantastic service means we can actually do that at a competitive price and still make money out of it ourselves.

"It is technology that has driven us to the change."

Mr Charles said the new focus will allow KPMG to "identify the stars of the future" among Scotland's SME and start-up scene, noting that the rapid growth of firms like online fashion retailer ASOS means "more than ever it is important to try to catch them early".

He said: "It's fantastic for us to pick up these smaller businesses and help them achieve their end objectives, be that listing in terms of a flotation, or a sale.

"Historically we have tried to pick them up once they have gone through some of that cycle, once they are beyond an SME."

The new service comes as research commissioned by the "big four" accountant reveals 71 per cent of SMEs in Scotland believe the government should do more to support small businesses.

Mr Charles said government policy falls outside his area of expertise, but noted that the survey bears out concern among SMEs that red tape continues to impede their growth aspirations.