Modelling the Accounting Information Requirements of Small Businesses

Abstract Studies in various locations have indicated that practising accountants are an important source of advice and information to the small business sector. However, prior research has concentrated on establishing a relationship between the two parties and in ascertaining the extent of services provided. This paper highlights the limited acquisition or preparation of detailed accounting information by Australian small business owner/managers. Operating and environmental variables which influence the preparation or acquisition of detailed accounting information are established and logistic regression techniques used to estimate an appropriate explanatory model, from which estimates of the probability that a firm, with particular attributes which are reflected in the explanatory variables in the model, will prepare or acquire a given level of accounting information.