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NIA Competitive Research GrantThe use of Internet Reporting for Small Business
The National Institute of Accountants awarded their major research grant of $16000 to the Centre for International Corporate Governance Research to identify and evaluate the benefit of SMEs using the internet and new technology to reduce the burden of regulation. The researchers are:
Background to the projectSmall business enterprises (SMEs) described as the “Engine of Growth’ of the economy represents 80% of all business in Australia. Yet, for a variety of reasons, many start-up businesses seem to fail in the first or second year of their establishment. One reason for this may be poor monitoring of their financial performance. Large businesses usually engage accountants as an important part of their staff. Small businesses usually cannot afford this and too often ‘dump’ the year’s paper work on their accountant’s desk when the tax return is due. What is needed is an ongoing affordable system that automatically monitors business activities, produces reports and signals when the accountant’s expertise is required. Such a system is now available. Phoenix has been developed by the information technology team at VU (Dai and Be, 2008, Dai and Uden 2008; Gou et al, 2008) to provide interactive on line monitoring and reporting of business activities. Accountants could use such a system to link into small business activities and provide their services and expertise at the time it is required and before major problems develop. Aims and significance of the projectThe purpose of this study is to identify and evaluate the benefits of internet reporting to accountants and SMEs that could reduce the regulatory burdens of small business and improve their efficiency and effectiveness. This research builds on previous research grants: the development of the Phoenix system and a more recent ARC grant to investigate how to reduce the burden of regulation on small business. This project will identify the role of accountants in this process. The advantages of internet reporting to small businesses would be that managers would have access on a ‘needs’ basis to the expertise usually only available to large businesses. There are a host of related applications of this technology. Regulators, for example, could be automatically notified of, and monitor compliance with, regulations without taking up the limited time and other resources of small business managers. Improving and simplifying the business environment is considered to be of the highest priority, as the level of regulation imposed by governments is claimed to be one of the major obstacles to business success. Good regulation can enhance Australia’s ability to compete and prosper economically; inappropriate or costly regulations will handicap the performance. Like many other developed countries, Australia has undergone a relatively rapid rise in regulation over the past couple of decades, in response to a succession of social, environmental and economic needs and pressures. The principles behind the use of this type of technology are not new. Large companies use a similar approach to monitor the capacities and quality of suppliers. What is new, is the potential to use this model to deliver professional services. The next step is to use information produced automatically to manage businesses and to establish an interactive exchange of the information between SMEs and their accountants. NIA GrantNational Institute of Accountants awarded a 1 year Competitive Research grant of $16,000 to support the project. Methodology Predominantly this will be an exploratory research study including qualitative and quantitative methods. These issues have not previously been investigated. Therefore a review of existing literature, informal discussions and in-depth interviews will be conducted. The sample for interviews will represent the following key stakeholders;
At the conclusion of the study results will be presented at a seminar at Victoria University and at an international conference. The results will also be published in a refereed journal and the NIA journal. Project teamPrincipal investigator: Professor Anona Armstrong AM Professor Anona Armstrong is the former Director of the Centre for International Corporate Governance Research at Victoria University, Melbourne. She has published widely both in Australia and internationally in the areas of management, corporate governance and evaluation. Partner Investigators: Professor Colin Clark Professor Colin Clark is the Executive Dean of the Faculty of Business and Law, Victoria University, Melbourne. He was a former president of the Victorian Division of CPA Australia. Colin has published widely on Public sector accounting. Associate Professor Arthur Tatnall Associate Professor Arthur Tatnall was a former Acting Director for Centre for International Corporate Governance Research, Victoria University, Melbourne. He has published widely in information technology. Professor Andrew Clarke Professor Andrew Clarke, Head of the School of Law, Victoria University researches in the area of law and corporate governance and has written widely in the field of small corporation regulation and comparative corporate governance. Professor Ronald Francis Professor Ronald Francis is a Professorial fellow of the Centre for International Corporate Governance Research, Victoria University, Melbourne. Ronald has published widely on ethics and Corporate Governance. Dr Wei Dai Dr Wei Dai is a Lecturer and Director of PHOENIX Research Program, School of Management and Information Systems School of management and information Systems, Victoria University, Melbourne. He has published widely in information technology. Kumi Heenetigala Kumi Heenetigala is a Research Officer for Centre for International Corporate Governance Research, Victoria University, Melbourne. She has previously worked as an accountant in Australia and as a Chief Accountant in Sri Lanka. She is currently enrolled in a Doctor of Business Administration degree at Victoria University. Her research specialises in Corporate Governance and Corporate Reporting. Advisory CommitteeGreg Tangey : Curriculum Development Advisor, NIA Further informationProfessor Anona Armstrong
Last reviewed:
11/06/2009
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