Poor accounting quality in small businesses: signs, causes, and consequences

Abstract

Importance: the article raises the problems of low quality of accounting in small businesses, reflects the author’s view on their causes and consequences, and clearly demonstrates the signs of low quality of accounting using the example of the contents of synthetic and analytical accounting registers, including accounting of settlements with counterparties, accounting of costs and expenses, as well as quantitative and sum accounting of inventory items, assesses the negative tax consequences of violations and errors in the field of accounting and gives practical recommendations for their correction. Purpose: to substantiate the reasons for the low quality of accounting in small businesses and assess its negative consequences for small businesses. Research design: identification of the causes of low quality of accounting in small businesses, demonstration of signs of low quality of accounting using the example of synthetic and analytical accounting registers, substantiation of the problems and consequences of violation of accounting methodology by small businesses for their activities. Results: the reasons for the low quality of accounting in small businesses are substantiated, signs of low quality of accounting are demonstrated using the example of synthetic and analytical accounting registers, an assessment of their tax and other negative consequences for the activities of small businesses is given.