Modernisation of the simplified accounting system for small businesses in Ukraine: Theoretical concepts and practical needs

Accounting science is increasingly focused on large businesses that have the resources to innovate and implement, while small businesses need support, understanding and clear rules. It should be borne in mind that the accounting system for small businesses should be simplified and the budget for its implementation should be minimal. The aim of the study was to improve the simplified accounting system for small businesses by using mandatory standard accounting methods with a limited number of them, rather than developing separate accounting rules. The study was based on a survey of 200 small businesses and entrepreneurs, a comparative analysis of the accounting system of 60 small businesses, and the use of a systematic research method. The structure and components of the accounting system are analysed, and the components that need to be simplified for small businesses are identified. The accounting system at an enterprise is considered as an information system. Using the methodology for assessing the effectiveness of an information system, the quality of the simplified accounting system provided for by the current legislation is assessed. According to the results of the survey, it was found that in Ukraine simplified accounting is used only by entrepreneurs in their activities, but the level of satisfaction with it is low. Legal entities that practically do not use simplified accounting as defined by Ukrainian legislation are twice as satisfied with the accounting system. The study identified the stages of development of the simplified accounting system in Ukraine, highlighted the existing options for simplification and outlines the directions of development. A vision of simplification of the accounting system at small enterprises in terms of the technical component is proposed, which involves setting limits on the scope of use of existing elements of the accounting method: limiting the requirements for valuation, variability of documents. The practical significance of the results lies in the fact that the main scientific provisions can be used by: government agencies in developing a regulatory framework for improving the simplified accounting system, improving digital tools to simplify the administration of small businesses; business entities in organising the accounting process