Recommendation for setting accounting standards and guidelines for SMEs
2016 Volume 2016 Issue 2 Pages 2-12
Details
2016 Volume 2016 Issue 2 Pages 2-12
The purposes of this paper are indicating what accounting systems for SMEs are valuable and how the Small and Medium Enterprise Agency (SMEA) understands them.
In a recent policy for SMEs, SMEA supports highly-motivated and practical SMEs. SMEA made the Guidelines on Accounting for Small and Medium-sized Enterprises (Chusho Kaikei-Shisin) and New document presenting guidelines for SME accounting (Chusho Kaikei Yoryo). But there are some cognitive gaps between the company’s managers and tax accounts that support accounting and tax procedures of SMEs according to the research by SMEA. We get the comment that accounting standards can prevent managers from making the company’s situation invisible in order to deal with the change of business circumstances.
For development of SMEs to improve their transparency, it requires the accounting standards reflects the actual situations of SMEs and the cultivation of manager’s consciousness for their company’s transparency. We think that it is time to consider to make not only financial accounting systems, but also guidelines for financial management and cost accounting of SMEs like the guidelines in 1950s.
