Demand for Accounting Services by Mini-markets: are Accountants Necessary?

Abstract

     This investigates the demand of accounting services by small business managers. To reduce problems caused by business type heterogeneity, the study focus on mini markets, directed mainly for low-income customers. Thirty three managers from the metropolitan area of Recife (capital of Pernambuco State, located at the Northeast of Brazil) were interviewed, to analyze their perception on the accountant and the accounting services received. The statistical analysis included position and dispersion measures, and non parametric tests (qui-square and exact Fisher test) on some hypotheses. The majority (64%) of the interviewers would keep their contract with their accountants, even if the tax calculation and collection would be simplified. However, the fact that 36% answered that they would not keep their accountant, in such circumstances, indicates that for an expressive proportion of small business managers, accountants still are perceived useful only for tax purpose. The study also reveals that expressive percentage of the respondents (70%) is willing to pay more to their accountants, if they provide better information to run their business. Three conclusion arise from the study: (a) significant portion of small business managers still perceive their accountants just as providers of services related to tax calculation and collection; (b) to significant portion of such managers, the accountant is not the only specialized producer of information to control and evaluate business performance; and (c) small business managers perceive value on information which helps to improve business management and are willing to pay for such information.