PECULIARITIES OF ORGANIZATION OF ACCOUNTING IN SMALL BUSINESS ENTITIES

Abstract

This article delves into the distinctive aspects of organizing accounting in small business entities, a critical area often overshadowed by the focus on larger corporations. Unlike their larger counterparts, small businesses face unique challenges and opportunities in accounting due to their limited resources, scale of operations, and regulatory environments. The paper begins by examining the fundamental differences in accounting needs and practices between small and large businesses. It then explores the impact of these differences on financial reporting, tax compliance, and decision-making processes. The article further discusses the role of technology in transforming small business accounting, emphasizing the increasing accessibility of sophisticated accounting software tailored to small business needs. Additionally, the paper addresses the challenges small businesses face in complying with regulatory requirements and how these can be mitigated through effective accounting practices. Lastly, it offers practical recommendations for small business owners and accountants to optimize their accounting systems, thereby enhancing financial transparency and business performance. This analysis is pivotal for small business stakeholders to understand the nuances of small business accounting and harness it for strategic advantage.