The Role of the External Accountant in Small Firms

Abstract

This paper details a second stage of a study into the use of small business computerised accounting systems (CAS), together with the role and impact of the accountant across businesses that use and do not use computerised systems. The most popular accounting software product is MYOB and the CAS was predominantly used for operational activities rather than for strategic purposes. Despite many owner-managers implementing a CAS, there was still a heavy reliance on accountants to review financial statements and to perform bookkeeping services. In fact, non-CAS-users tended to utilise accountants’ services less than computerised accounting businesses. The findings of this study would be useful for accountants in determining marketing strategies for their small business clients, and for small business owners in general in encouraging them to utilise a CAS to provide more cost effective accounting information.