Small Business Performance Requires a Better Understanding of Tax and Accounting Software

Abstract

To what extent do small businesses need to know about businesses taxes, accounting software and financial statements? Recent Australian research demonstrates that small business owners with a higher understanding of tax and accounting software are more likely to achieve a higher level of business income. This greater understanding may enable owners to better manage their cash flow and highlights the importance of improving owners understanding of business tax and accounting software.

Keywords: small business, tax literacy, cash flow, Resource Based Theory, Australia

JEL Classification: K34, M49