Development of Accounting and Analytical Tools for Strategic Transparency of Small and Medium-Sized Businesses

Authors examine information needs of financial reporting users and information requirements for management decision making in the context of development of conceptual framework on disclosures for SME financial reporting. The purpose of the study was to prepare concrete proposals to achieve transparency of small and medium-sized businesses, taking into account their heterogeneous composition, information requests from interested parties, including the state. In accordance with the purpose of the study, the following main tasks were set: analysis of the evolution of the accounting and analytical system of small and medium-sized businesses and scientific discussions regarding possible ways of its development, as well as the necessary and expected participation of these enterprises in solving economic, social and environmental problems facing the regions, our country and the world; identification of the most important features for the actual classification of a set of small and medium-sized businesses; development of recommendations regarding the formation of reporting information, taking into account the characteristics of each group of studied enterprises and the relevant requirements of stakeholders. The research model was a multi-stage progressive movement towards the goal with the involvement of achievements of related scientific fields. The expansion of scientific search was carried out through the use of research results of both Russian and foreign scientists in the field of statistics, economics, management, etc. The conclusions of the study included: justification of the need to use the concept of strategic transparency for the studied economic entities, and the application of an individual approach to a group of small and medium-sized businesses, as well as the allocation within medium-sized enterprises of a subgroup of innovative enterprises and a subgroup of enterprises under transition to large business; recommendations for each proposed group (subgroup) on the composition of disclosures of reporting information, including non-financial. The practical significance lies in the possibility of using the recommendations made by small and medium-sized businesses to increase the transparency of their reporting information, as well as gain the trust of stakeholders, which generally contributes to the sustainable development of the Russian economy and the solution of global challenges facing society. The originality of the study consists in the disclosures of reporting information structured by groups of small and medium-sized enterprises; the article introduces the concept of strategic transparency. Conducted research offers ways to increase transparency of medium-sized businesses by non-financial disclosures on ESG factors.

transparency, small and medium enterprises, SME, disclosures for SME financial reporting, accounting, social reporting, environmental reporting, non-financial disclosures on ESG factors, concept of strategic transparency