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“6 Steps” For Determining Of Efficiency Of Small Entrepreneurs

Author

Listed:
  • Boris Banovic
  • Vladimir Grebenar

    (Periska Ltd.)

  • Goran Pichler

    (Moje Sunce Ltd.)

Abstract

Single-entry accounting is applied by small entrepreneurs with annual revenues under 2 millions HRK. No financial/business reports based on a single-entry accounting system can provide reliable information on business efficiency. The major purpose of a regulated appliance of single-entry accounting is providing information for taxation of small entrepreneurs. This paper illustrates a methodology for calculation of business efficiency of small entrepreneurs applying single-entry accounting. The methodological approach outlined in this paper is based on six steps. In order to precisely determine the relevant business result, a financial analyst needs to calculate accurate data in each of the outlined six steps. The methodology described in this paper is in line with techniques of double-entry accounting. This paper uses a business case of a small family farm to illustrate the difference between (regular) financial reports generated by small entrepreneurs applying single-entry accounting and reports based on the methodology of six steps.

Suggested Citation

  • Boris Banovic & Vladimir Grebenar & Goran Pichler, 2015. "“6 Steps” For Determining Of Efficiency Of Small Entrepreneurs," Economy of eastern Croatia yesterday, today, tommorow, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 4, pages 232-238.
    • Handle: RePEc:osi:eecytt:v:4:y:2015:p:232-238
    as

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    File URL: http://www.efos.unios.hr/repec/osi/eecytt/PDF/EconomyofeasternCroatiayesterdaytodaytomorrow04/eecytt0423
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    References listed on IDEAS

    as
    1. Michel Gervais & Yves Levant & Charles Ducrocq, 2010. "Time-Driven Activity-Based Costing (TDABC): An Initial Appraisal through a Longitudinal Case Study," Post-Print halshs-00555218, HAL.
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