ACCOUNTING PROBLEMS ENCOUNTERED IN SMALL BUSINESS FAILURES

This study examined the accountant's role as a financial advisor and partial decision maker to small business managers. Accountants cannot forget basics. All statements should be prepared in a timely manner and should be available soon enough to assist management in effective decision making. However, management must be knowledgeable as to what the statements are portraying in order to make decisions. Accountants must remember that often management does not have the skill to interpret the statements, the records and the findings. Accountants must educate them. Financial information should not be just handed to management by accountants but both must expend time and effort to enable management to understand what is presented and the impact that it will have on the operation of the organization and its decision making. It is inexcusable for skilled external accountants to permit clients to fail because of indifference. Small business owners have enough problems with which to contend without having to consider the competency and motivation of an accountant. The role of the accountant is to represent the financial team for the small business owner and to reduce the pressures, problems and hurdles facing small business owners in this difficult competitive U.S. economy. Basic accounting principles practiced by competent and caring professionals can be the main source of strength which can enable small business success