The Advantages Of Simplified Accounting Methods In Small Business And Private Entrepreneurship

Abstract

Small businesses and private entrepreneurship represent crucial pillars of economic growth, job creation, and innovation. However, these entities often face challenges in meeting complex financial reporting standards designed for larger corporations. Simplified accounting methods provide a practical alternative by reducing costs, saving time, ensuring regulatory compliance, and encouraging entrepreneurial activity. This article explores the advantages of simplified accounting through both theoretical perspectives and international practices, including IFRS for SMEs, the European Union’s Accounting Directive, and simplified tax regimes in Russia, Uzbekistan, and Kazakhstan. By comparing different approaches, the study highlights how simplified systems promote formalization, support business sustainability, and contribute to inclusive economic development. While limitations exist, particularly in relation to financial depth and investment readiness, the evidence strongly suggests that simplified accounting is an essential tool for empowering small enterprises and fostering long-term economic resilience.