Examining Small Business Owners’ Psychology, Understanding and Perception of GST: An Empirical Study

Abstract

Purpose - Investigating the realities of financial and managerial accounting in a select number of small businesses is the goal of this essay. The purpose of this study is to learn more about small company owners' perceptions and knowledge of the Goods and Services Tax (GST).  From the owner's viewpoint, it is specifically investigated what financial data is gathered, how it is used or not to make business choices, and assesses the success of the small business owners, as well as the part the accountant plays in the process.    

Methodology/approach - This exploratory investigation is grounded in a phenomenological paradigm. The owners of 10 small business owners participated in semi-structured interviews with the goal of better understanding organizational behavior as opposed to theory and textbook practice.

Findings - The in-depth examination found a very limited comprehension of accounting information and issues with the financial literacy of these small business owners, and the qualitative data confirmed earlier studies in other nations. The main method for evaluating company success was an informal evaluation, such as how much cash was in the bank since accounting reports were not often made or utilized. Although some company owners sought out more comprehensive business guidance, accountants were engaged for tax services.

 Originality/value - It becomes clearer why there could be a discrepancy between the language of textbooks and the reality of accounting practice in small business owners. The implication of this is that small business owners' financial management practices need to be better described in accounting textbooks.